Signs we've entered a tenant's market

Significant write down and sale of the U.S. Bank Tower, an iconic DTLA office property leads me to believe a few things.

🏢 Sluggish leasing activity as a result of the recession and the pandemic is cause for concern to landlords whose rent rolls aren’t showing long term stability.

❓Shadow vacancy, again as a result of the pandemic and recession, could result in a tsunami of new-to-market subleases further hampering velocity in leasing activity.

💰 Overwhelming signs that we’re at the end of the “landlord’s market” cycle mean future lease economics will be more tenant friendly including robust concessions packages.

Although we aren’t currently seeing a direct effect of economic stagnation reflected in leasing rates throughout Southern CA, I am sure 2021 will mark the beginning of a fresh cycle in the office market.