Madison Street Beat
A look at key metrics for Madison’s Office Space Market – Q1 2021
MADISON STREET BEAT–Q1 2021
As business bounces back from the COVID-19 pandemic, government shutdowns and the recession, the commercial real estate market is starting to show signs of recovery. Sales volumes are gradually increasing, though not yet back to pre-pandemic levels. In Q1/21, One of Madison’s investment office deals closed in the $6 million range, while all other deals were under $2 million. Large transactions are expected to materialize later in the year as large, national real estate firms have a record amount of money to invest that has been sitting anxiously on the sidelines.
Occupancy rates dipped to just under 95% in Q1/21, but many in the industry are optimist that occupancy will soon return to pre-pandemic levels. Many tenants are returning to the office, while others are delaying their return as they track the impact of the vaccine administration on potential office attendance. Once thing is clear — after a year+ of working remotely, employees want to get back into the office. In fact, 94% of employees are ready to return to the workplace. Vacancy rates are expected to hold steady, as a low supply of new space is anticipated.
