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Although not the norm, some markets are experiencing incredibly low office vacancy rates, with some even getting tighter year-over-year.
The current national average stands at 13.7%, an increase of 97% YoY.
Nonetheless, a new trend is emerging: Class A office space is the mainly affected, accounting for 49% of all vacated space, while Class B office space was taking 70% of that share last year.
This might be explained by the fact that less affluent tenants who wanted to leave their Class B offices have now done so, while more established businesses, often occupying Class A space, are now realizing that making employees come back to the office is not that easy of a deal.
As AI and tech are booming, data centers tend to becoming paramount infrastructures for our lives to function normally.
Businesses and individuals wouldn’t be able to communicate without these.
Virginia, Nebraska and Ohio are becoming popular destinations for data center investors.
In less than 4 years, Virginia’s data center inventory (in terms of megawatts) has nearly doubled: going from 1,275.7 megawatts in H1 2020, all the way up to 2,499.1 megawatts in H2 2023.
Nebraska was having 1,500 construction workers focusing on building data centers in 2022, contributing to the expansion of the State’s existing network, already consisting of dozens of these, mainly for cloud-service and colocation purposes.
Ohio is experiencing a similar trend, with billions of dollars of the State’s GDP coming from data centers’ operations and the jobs these have created over the past few years.
