Overall office market vacancy levels will remain elevated in 2024 in most markets as corporate space occupiers continue to downsize their footprints as lease terms expire. Large cities such as New York, San Francisco, Chicago, Los Angeles, Seattle, and London experienced significant negative absorption in 2024 which increased office vacancy rates.
The retail markets remain quite healthy with positive absorption in most major cities during 2023. Overall vacancy rates, including single tenant properties, range from 2.5-5%. Asking rental rates increased throughout 2023 and that trend is expected to continue into 2024.
Tenant improvements and tenant improvement allowances are provided in many leases. How these items are provided depends on the building, the landlord, the market, and the tenant.