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Investment a Bright Spot as Pandemic Continues to Impact Leasing
Colliers' latest report explores key factors that impacted the U.S. office market as 2020 came to a close. U.S. office absorption hit a record annual low in 2020 as the effects of the COVID-19 pandemic placed an increasing toll on the market as the year progressed. Vacancy rose for the fourth consecutive quarter (but remains below its historic peak), while sublease space continued to flood the market.
Sales volume in Q4 2020 is encouragingly up when compared to the prior quarter, suggesting that more investors are actively looking at office acquisitions. Asking rents are holding firm for the most part, however, the gap between asking and effective rents seems to be widening due to an increase in the concessions on offer.
