Madison Commercial Real Estate Jobs Soar | Archive
MADISON (WKOW) – Offices available for rent in Madison are as ubiquitous as a Wisconsin badger.
Craig Stanley, Commercial Real Estate Advisor at Broadwing, said, âWe have seen a four-and-a-half percent growth in vacancy rates in the office market.
Pre-pandemic, experts say Madison’s office vacancy rate has hovered around 8% and that currently the city’s vacancy rate is just above 12%. Stanley says it’s worrying.
Stanley said: âAnything below 12% is considered very, very healthy and the reason office vacancy rates are increasing is because employers provide employees with a hybrid work environment. More and more employees are working from home, companies are downsizing or giving back if the lease expires, they are giving back their space because their teams are at home. “
Meaning that many employees now want flexibility in the number of days they report to an office, more than 66% of Madison workers prefer a hybrid work situation, according to the Realtors Trade Association.
With commercial real estate vacancy rates rising, experts warn the business lunch crowd may be off the menu.
Stanley said, âI think one of the critical factors that has a secondary impact on reducing office space is that you will see an impact on secondary businesses like restaurants and the demand for restaurants during the day. The real challenge for businesses right now is when do you have a dedicated workspace? “
Stanley added, âIt may take more than three years for the United States to see commercial vacancy rates return to normal. “