2023年下一代建筑报告英文版

Strength.weakness,andOpportunity in Today's QficeMarket A Fundamental Shift in Demand and theClassification of Office Space Dominated by themes of bifurcation, densification, and soft market conditionssegments of theWashington,D.C.office market are performing very differentlyfrom one another. A portion of office stock was impacted more severely than the overallinventory.and some office properties have become obsolete in their currentstate. Simultaneously,highqualityproducthascapturedthebulkofdemandsincethe onset of the pandemic, and is expected to remain opportunistic for tenantsand landlords alike. As a result,the market mustbe defined in newways,and CBRE Mid.Atlantic Research has created now building class designations The New Segmentsofthe Market Obsolete Buildings ➢➢➢>At least50%vacant> Chronic lack ol dcmand (no dcals over 5K SF.mpre t.han 3-vear terms signed in at. laast 5i years,> Many have physical limitations like low ceilingheight To better understand true vacancy and opportunity.CBRE Mid-AtlanticResearch identified and analyzed three segments of the office market: Buildings which are obsolete in their current state, absent a capital infusion;- Hardest-hit bulldings. those that recorded the greatest increase in vacancyduring the pandemic;- class A+ buildings, Alongside Trophy properties, they outperformed theoverall market in an environment of flight-to-quality. Hardest-Hit Buildings ➢> 10x of builcings with thc largost squarcfaatage increase in vacancy fram Q1 2020 toQ12023 Together, Obsolete and Hardest-Hit Buildings make up 15% of invertory C19.1million sg. ft.) and 37% of current vacancy (9.6 rnillion sq. ft.). Class A+ Class A+ buildings make up 10% of inventory C13.1 million sq.ft.> and 13% ofcurrent vacancy c3.3 million sq. ft.. Meanwhile, activity is concentrated at thehigh end of the market. Class A- properties captured 41% of private sectorrelocations since the start of the pandemic, outpacing Trophy properties,which caplured 20% during Lhe same liie. ➢➢> Top 25% in Laking 1cnts, cxcluding Trophyhuildings> High cquality and cquantity of builcling amenities CERF 4 *- a e E,Ir Kcy Findings Obsolete Buikdingsaverage 48 years cld. Hardest--it Bui cli 1gsaccounted for 77% ofvacant space added to thermarkel curin hepardemic Obsolete andHardest Hit Builc ngstogether make up15% of inventory 4% of the market isobsolete in its currents.ate. Class A+ and IrophyRuildings castured 61% cfpriva.e sector relocatis1ssinec the starl of thpander c. when derancl rett.mns. andwhile the Trcphy marketcortinues to tighten, Class A+will caoture an cvon grcatcrshare of leasing. By tsel. Class A- captured41%of private sectorrelocaticns since the startof the ancemic. Class A+ asking rates offera 12% discol.nt to Trophyand represenes a 25%premiurn o comrmiodityspare. Obsolete Oficc vacancy is clevoted to 'cecrd-nigh levels at 2c.3%iri:d 61 properties in the District have a vacancy rate of5o% or higher. Nine bii cings a'e fully vacant. ➢➢➢>At least 50%vacant> Chronic lack of demand(no ceals over 5K SF.morethan3-year terms signed in at least 5ycars)> Many have physical limitationslike low ceiling height Qosclele builcirgs are al leasl 50x vgcar.with cclererd in at leest five years. In zota. 23 buildingstataling 3.7 million sq.ft, fall into this category ofobsolescence. Vany cf these bui dincs also ndve hrys caI'mitatinis liko cw cail'ng Io ght, midh cck ccatinn, andincfficicnt ccl.mn spocing. They account for 4% of the overall inventory, but 15%F orr rniven.ory. Lre oveisll vaezrcy rale would be 210bai : [2o nils: lwer than it ini Lday. fremr 20.3% lo 18.2%. 84%Average vacarcy rate CharacteristicsofObsoleteBuildings 48 YearsAverage building age Bu ldiry dge is a co'ririon ctaracter 'stic arneng lhis sel cf prsoerlies. w hay nverago h.jildlrg ago of 7 8 yons. while gveage time on merkel is so mon.'s lor the largest bloc<s ir .ese3'opotics. scma spaccs ave ban? lisicd in axeoss af 10o manths ardisted, thro averagc as<ing rcnt is s4h.sl por sg. t. an a fu ll-acrvico bngis.which 's enong the botton one thircl o' ell prgeity asking rstes in theJistr ct. 50 MonthsAverage time on market early halt (or 48%) ot vacancy withi" the bullir set wes vecatec lyccworntent torarts, wfile an additional 33% wa: left borind by lew f rms-pgracing their space S48.1 FSGAveragoaskirigatc withott a sign "icant reneva: cn, thene tauildinge are oxpcetocd to rerai(b a have fleor plates sral e:ar hoou s. ft. the irdustry ber'cmar<for resiclertisl ccnversion 13 Conversion candidatesbased on flocr plates smaller tran 15k S Hardest-HitBuildlings wile a secrnenl ol tre o lice grkel cculc oe considered oosolele as itstancls tcslgy. there is also a portior ot the mgrket tra: wss hi.disprceortionote y rard since the orset cf the pendemis. ➢>10% of buildings with thelargest square footageincrease in vacancy fromQ12020toQ12023 o de i. Y the bui cings Ihal co 1.ribouled the rkost lo vacany, cBrEResesro analyzec