{"id":18705,"date":"2024-05-04T14:35:30","date_gmt":"2024-05-04T07:35:30","guid":{"rendered":"https:\/\/www.galaxyoffice.vn\/?p=18705"},"modified":"2024-05-04T14:35:32","modified_gmt":"2024-05-04T07:35:32","slug":"ty-le-van-phong-bo-khong-o-my-cao-ky-luc","status":"publish","type":"post","link":"https:\/\/www.galaxyoffice.vn\/en\/ty-le-van-phong-bo-khong-o-my-cao-ky-luc\/","title":{"rendered":"Vacancy rates for office space in the United States hit a record high"},"content":{"rendered":"

The office space surplus in the United States stems primarily from the significant shift in how office workers operate following the Covid-19 pandemic...<\/p>\n\n\n\n

\"\"
Illustrative image \u2013 Photo: Bloomberg.<\/em><\/figcaption><\/figure>\n\n\n\n

The total amount of vacant office space in the United States is now greater than at any time since 1979, according to new data released by research firm Moody's Analytics. In terms of percentage, the vacancy rate for office space in the country has reached a record high.<\/p>\n\n\n\n

The surplus of office space in the United States stems primarily from the significant shift in how office workers operate following the COVID-19 pandemic. For many workers in this country, the traditional five-day work week, from 9 a.m. to 5 p.m. each day, has been replaced by a remote work model, where they enjoy the comfort of being at home while still completing all assigned tasks.<\/p>\n\n\n\n

This major shift in work culture has exacerbated the oversupply of office space that was built rapidly in the 1980s and 1990s in the United States, according to a report released by Moody's on January 8.<\/p>\n\n\n\n

The nationwide office vacancy rate in the US reached a record high of 19.61% in the fourth quarter of 2023, according to data from the report. Over the past 40 years, the vacancy rate for office space in the US has only reached a peak of 19.31% twice. Before the pandemic, the vacancy rate for office space in the country was around 16.81%.<\/p>\n\n\n\n

A high vacancy rate in office buildings is bad news for office landlords and developers, as well as for restaurants, eateries, retail stores, and other small businesses that depend on office workers as customers.<\/p>\n\n\n\n

Due to declining office demand, new office construction activity in the US has also fallen to its lowest level since 2012.<\/p>\n\n\n\n

However, Moody's report shows that there are still some bright spots in the office real estate market in the world's largest economy. The newest and most modern buildings, located in prime locations and offering many amenities, can be called the A segment, and they continue to attract a lot of interest.<\/p>\n\n\n\n

This type of office building attracts tenants because it offers \u201cflexible or smaller office configurations, particularly well-suited for tenants seeking a physical office presence for branding, meetings, training, collaboration, etc.,\u201d the report states.<\/p>\n\n\n\n

The report also indicates that suburban offices often have higher occupancy rates than offices in large cities due to their proximity to residential areas, which helps office workers reduce their daily commute time.<\/p>\n\n\n\n

According to a forecast released in June 2023, research firm Capital Economics predicts that office property prices in the US will decline by 35% by the end of 2025 and will not return to their pre-pandemic peak until at least 2040. The decline in the office real estate market is said to be similar to the dire situation of shopping malls amid the growing development of e-commerce.<\/p>\n\n\n\n

Many large institutional investors such as Brookfield Corp. and Blackstone Inc. have defaulted on some office buildings, choosing to stop making payments rather than continue \u201cburning money\u201d on these loss-making properties. At the end of March last year, office buildings with a total value of approximately $18 billion in the US were considered to be in financial distress, and office buildings with a total value of $43 billion in the country were considered to be at risk of default, according to a report by MSCI Real Assets.<\/p>\n\n\n\n

Galaxy Office \u2013 A reputable and professional office consulting and leasing company in Ho Chi Minh City<\/strong><\/h2>\n\n\n\n

Galaxy Office is proud to be a leading name in the office rental sector in Ho Chi Minh City, not only for its quality but also for the diversity and flexibility of its services. We not only provide modern and convenient office solutions but also focus on cost-effectiveness and efficiency in every transaction.<\/p>\n\n\n\n

With over 10 years of experience, we have built a diverse and extensive network of offices throughout the city, from central areas to surrounding areas. This allows us to meet all customer needs, from newly established businesses to large companies expanding their operations.<\/p>\n\n\n\n

At Galaxy Office, we don't just provide you with a workspace, we also offer a creative and dynamic business community. We always create opportunities for businesses to collaborate, share ideas, and create new business opportunities.<\/p>\n\n\n\n

If you are looking for a reliable partner to rent an office, contact Galaxy Office immediately via our hotline: 0939.663.882. Our team of specialists will attentively listen to and advise you on all your requirements, helping you choose the office space that best suits your business's specific needs and accompanying you on the road to success.<\/p>\n\n\n\n

\"Galaxy
Galaxy Office has many years of experience in the market.<\/em><\/figcaption><\/figure>\n\n\n\n

If you would like us to proactively contact you for support, please fill out the form below:<\/p>\n\n\n\n