In the wake of COVID-19 and the rise in remote or hybrid working models, office building performance has generally suffered across the board. However, using data, we are able to ascertain which segments of the market outperform others.
Free-standing buildings in Washington, DC have outperformed both corner buildings as well as mid-block buildings. This can be attributed to features such as easier accessibility or more copious natural light amongst others.
Unsurprisingly, mid-block buildings have suffered the most since 2020, with average vacancy amongst mid-block buildings reaching over 20% in Q3 2023. The issue is that while these buildings have been hit the hardest, they also present the most difficult challenges as it relates to adaptive reuse.
September 21, 2023