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.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
About Yardi
Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.
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