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I t’s nice that we no longer live in the reality of pan- demic-related shutdowns and restrictions, but a glance at commercial real estate numbers tells you we’re still dealing with the ripple effects and may never return to the “old normal.” As of the first quarter of 2023, the national office va - cancy rate soared to 16.1%, with cities like San Francisco reckoning with a 24.8% vacancy. New York City also had a cavernous 76 million square feet of vacant office space as of April 2023. Meanwhile, the overall value of real estate plummet- ed, with a staggering $77.5 billion nosedive, according to Colliers, a commercial real estate services company. That figure marks a 64% decrease year-over-year in August 2023. And here’s the kicker: global real estate giant Cushman & Wakefield projects things will get worse, with a jaw-dropping 1 billion square feet of vacant office space by 2030, a 1.5-fold leap from pre-pandemic levels. However, amidst this somber landscape, retail emerges as a ray of hope, with vacancy rates below the previous year’s and pre-pandemic benchmarks. These spaces, especially those anchored by supermarkets, have become more than just shopping destinations; they’ve evolved into community cornerstones. While this real estate segment has its challenges, these spaces do more than just drive commerce. They weave the very fabric of society, offering tangible experiences in a predominantly digital world as invaluable assets for both consumers and investors. The commercial real estate market stands at a pivotal juncture, influenced by a confluence of factors that have reshaped our daily routines, living spaces and consumer behaviors. On one hand, the industry faces a looming debt crisis, evolving work habits and the surge of e-commerce.
Vision Magazine 63
October/November 2023
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