According to a recent CBRE monthly statement, Pulse of the U.S. Office Demand, the recovery in several of the top US markets came to a halt in December due to instability caused by the COVID-19 omicron difference.

The trend for companies looking for office space was weak in December last month, while for companies terminating new leases it was relatively low according to the CBRE indices. In the meantime, the availability of sublease has slightly improved, although it is still higher.

“Omicron has damaged many of the economic and social aspects of our return to normalcy, so it is expected to affect the rental of office space,” said Nicole LaRusso, director of research and analysis at CBRE, lead author of the report. “This is temporary. Demand for office space is likely to recover earlier this year as the kroon falls and Omicron companies are back on track with their long-term office plans.”

To determine the speed of recovery, the CBRE Monthly Report follows 12 leading US office market indicators: time-in-market (TIM), which measures the amount of office space companies are actively seeking. ; To rent the event in the form of concluded lease agreements, and the existence of sublease space.

The global outlook for the indices reflects the gradual recovery of the office market. For each index, the percentage is the same as at the Omicron pre-epidemic level in 2018 and 2019.

Overall, Boston is leading the recovery between 12 markets, with the December TIM event 18 percent higher than its pre-crisis level and the rental event doubling that level. The next high-end recovery site is Dallas-Fort Worth and Los Angeles, both of which have been upgraded to a strong rental service. Atlanta and Houston also made progress in their recovery, both of which combined with subleasing.

The US TIM index remained stable at 86 points in December, attracting the June-July peak (87). In seven markets, 12 markets saw a modest decline in the TIM index. Houston (118), Boston (118), and Dallas-Fort Worth (106) were the only three omicron pre-epidemic events in December.

The leasing activity index fell by 10 points to 95 in December. The eight markets in the 12 registered leasing markets are relatively flat compared to the previous month. However, there were five recorded pre-epidemic events: Boston (192), Los Angeles (135), Seattle (115), Dallas-Fort Worth (106), and Atlanta (105). First, Manhattan (100) is in line with its pre-epidemic phase.

The sublease availability index was updated in December, although it is still a major market crisis. The index fell by four points to 193 in December, indicating a slightly lower positive increase in the volume of subleased space. Thus, the index has still doubled from pre-epidemic levels. Nine of the 12 markets fell in December, with major improvements in Houston, Los Angeles, and Atlanta.

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