Landlords of older office buildings are suffering the most, as newer, better equipped builds draw tenants to their greener pastures.shows the national office vacancy rate reached a 30-year high of 18.5% in the second quarter of 2024, up 4 basis points fromTo make matters worse, projections show that new office buildings anticipated to enter the supply in the second half of 2024 will only be 39.
There's no doubt that vacancies are increasing, but the data shows that not all office spaces are being abandoned equally. But despite the flood of tenants to Class A offices, the trend likely won't be enough to offset the national vacancy rate. "Difficulties within that Class B and C segment are going to have a greater impact than gains or improvements we're expecting to see within Class A," says Meehan.