About $56.1 billion of office properties traded last year, down 46.9% from $105.6 billion in 2019
SANTA BARBARA, Calif., Feb. 16, 2021 – Yardi® Matrix has released a new Office Transactions Bulletin, which reflects the volatility of the commercial office market in 2020. As expected, the fluctuating conditions are attributed to the economic uncertainty caused by the COVID-19 pandemic.
Around $56.1 billion of office properties traded last year, down 46.9% from $105.6 billion in 2019, according to Yardi Matrix data. The impact was felt broadly by region, with only a handful of exceptions.
“By region, gateway markets and the Northeast fared better than most secondary and tertiary markets. Markets in which sales held up in 2020 have strong niche sectors, such as life sciences, biotechnology and pharmaceuticals,” the bulletin states. Roadblocks to transactions included logistics, pricing uncertainty and limited debt availability.
One bright spot for the sector was rent collections. Despite most office employees working from home for the majority of 2020, office rent remittance was above 90 percent.
“While this has created stability over the short term for offices, questions abound over the utility of office space and future space needs,” states the bulletin. Answers will likely emerge as 2021 progresses and vaccines become more widely available.
Dive deeper into the office market conditions in the U.S.
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