Site Search

The office market remains complex. Demand is rising, but national vacancy rates remain high at 13.9%. Smaller occupiers are upgrading spaces, while larger ones are staying put. The supply pipeline is shrinking, and rents are expected to grow modestly.

The 2025 outlook for the mortgage banking industry is set for cautious optimism and strategic planning. Understand how mortgage lenders can navigate economic and market conditions to capitalize on growth opportunities in the evolving industry landscape.

The office market's recovery remains challenging, with vacancy rates projected to exceed 13.9% in 2025. Despite a rise in leasing activity, weak demand and new supply persist. Office values have dropped 40% to 45%, with further declines possible.

Despite slight occupancy gains, the office real estate market faces record-high vacancy rates. With office attendance at 70% of 2019 levels and high sublease inventory, further occupancy losses and value corrections are anticipated. 

Shrinking demand in office space led to further footprint reductions, shooting vacancy up to a record 13.9%.

A renewed focus on the efficient use of office space led to further footprint reductions and higher overall real estate vacancy in 2023. The national vacancy rate currently stands at a record 13.8%.

A renewed focus on the efficient use of office space led to further footprint reductions and higher overall vacancy in 2023. The national vacancy rate, currently at a record 13.7%, has climbed 420 basis points in that same period.

Record-high amounts of available sublease space are placing further downward pressure on asking rents across the country, putting 2023 on pace for the largest amount of negative net absorption on record.

As interest rates and inflation have risen, mortgage lenders have seen a slowdown in their sector. These strategies can help your institution manage costs in this lean period and position yourself to thrive in a recovery.