Large properties continue to face pricing challenges as investors favor amenity-rich assets, Yardi Matrix data shows.
Discounted sales are still rising in the sector for properties unable to adapt to shifting demand, according to the latest Yardi Matrix national office report.
Though vacancy is on the decline, office utilization did not significantly increase, while hybrid work is being widely adopted. Kastle’s Back to Work Barometer indicates that office attendance has remained at around 55 percent for the last few years. Office fundamentals remain challenged, making a sustained decline in vacancy unlikely. Market bifurcation across property types will continue and is expected to grow as AI adoption increases.
Distress continues to rise across the sector. Since 2024, distressed properties have accounted for 19.4 percent of the 800 million square feet that changed ownership—up 6.2 percent from the deals closed between 2021 and 2023. Urban core assets are experiencing the highest rate of distress...
Though vacancy is on the decline, office utilization did not significantly increase, while hybrid work is being widely adopted. Kastle’s Back to Work Barometer indicates that office attendance has remained at around 55 percent for the last few years. Office fundamentals remain challenged, making a sustained decline in vacancy unlikely. Market bifurcation across property types will continue and is expected to grow as AI adoption increases.
Distress continues to rise across the sector. Since 2024, distressed properties have accounted for 19.4 percent of the 800 million square feet that changed ownership—up 6.2 percent from the deals closed between 2021 and 2023. Urban core assets are experiencing the highest rate of distress...
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RSK: Office vacancy rates are slowly falling while distressed office buildings are rising.
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- - Volume: 26 - WEEK: 28 Date: 7/7/2026 7:41:03 PM -