The office sector continues to face challenges, with elevated vacancy rates and weak nominal rent growth. However, declining new completions have begun to ease some pressure.
Reduced demand, driven largely by the widespread adoption of hybrid work models, has prompted many companies to reassess their office space needs, while higher financing and construction costs have further slowed development. As a result, tenants are benefiting from a broad range of options across locations and building classes for both direct leases and sublease spaces. 
Notably, the pace of deterioration in the sublease vacancy rate has slowed in recent quarters, with the most recent period showing a modest decline. This shift reflects increased absorption of existin...