"With the current correction in the technology sector leading to tens of thousands of layoffs, high profile office spaces are being placed on the market for sublease or leases are being terminated altogether. As office tech space requirements are being put on hold, the Los Angeles office market will be more of a tenant-favorable market as demand is forecasted to remain low through 2023."

"Overall availability in the New York City office sector reached a new cycle peak of 19.7%. Amazon signed two large enterprise agreements with WeWork, in what was an otherwise slow quarter driven by large renewals. The tech sector accounted for only 15.6% of the new and relocation leases signed, which remains a far cry from the 33.5% share in Q2 2020."

"Availability rates in the San Francisco office market continue to increase as more tech tenants sublease their space. Expect the technology sector to continue to adjust as long as interest rates increase in addition to ongoing remote work styles. Despite lower leasing activity, venture capital activity continues to remain active in the market with verticals such as artificial intelligence and green tech leading in funding."

"Despite calls from major firms like Amazon, Microsoft, and Meta for in-person work and 1:1 assigned seating, Seattle/Puget Sound's office availability rate has reached 25.0%. Sublease additions by Microsoft, Tableau, and Meta have contributed to this rise. In response, landlords are poised to offer attractive concession packages, providing tenants affordable access to high-quality space."

"In Q2 2023, availability continued to rise year-over-year by 570 basis points to 26.6% in the Silicon Valley office market due to sublease space placed on the market from Meta and Roku, in addition to Google putting over 1.4 million square feet (msf) on the market for sublease. Technology companies continue to be in a correction translating into increased office availabilities."

"While the broader tech industry shows signs of contraction in leasing demand, the venture capital data from the first half of 2023 indicates that transformative technology verticals are continuing to raise substantialfunding."

"Vacancy shows 110 basis point increase from one year ago and could increase more as market demand slows."

"Vacancy climbed 320 basis points (bps) year over year to 6.1%."

"Vacancy has steadily climbed four consecutive quarters now, ending Q2 at 7.2%."

"Market conditions remain resilient against a potential slowdown while demand holds strong."