Madison Street Beat
A look at key metrics for Madison’s Office Space Market – Q3/22
MADISON STREET BEAT– Q3/22
Occupancy rates fell slightly from the previous quarter but remained higher on a year-over-year basis. Many companies continue to operate on a hybrid basis, incorporating both in-office and remote workdays. Smart companies are changing the way they think about office space. Rather than viewing office space as an expense, they are investing in well-designed workspace to boost profits by increasing productivity, efficiency, and engagement.
After rebounding strongly in 2021, growth for the U.S. economy in 2022 has slowed due to rising inflation and geopolitical events. However, both the overall economic conditions and the commercial real estate market in Madison are stronger than national averages.
Sales volume for Madison area office properties Q3/22 was the highest since Q4/19, a signal that capital is regaining confidence in the office sector. The most notable transaction was DMB Community Bank’s acquisition of the former Baker Tilly HQ building at 10 Terrace Ct for $12M. Also of note was Compass Properties sale of 2537 Daniels St to an investor for $7.2M, 5 years after acquiring the building in 2017 for $3.3M.
