Shifting tides: How class B and C office availability reflects U.S. market recovery
In the post-COVID era, the ongoing flight-to-quality trend has placed significant pressure on class B and C office properties nationwide. But more recently, performance across this segment has varied widely by market.
Atlanta, Manhattan, and Silicon Valley, which experienced the most significant year-over-year decreases in class B/C availability by an average of -1.6%, also reported notable declines in trophy/class A availability by -2.3%. This trend indicates a broader market recovery in these regions.
Conversely, markets with the sharpest increases in class B/C availability, like Chicago, D.C., and Tampa (average of +1.7%), experienced simultaneous decreases in trophy/class A space by an average of -1.2%—indicating that occupiers in these areas are gravitating toward higher-quality buildings from lower-class spaces.
