Urban Office

Urban office real estate is a highly sought-after asset class, often commanding premium prices due to its location in business districts of major cities. Prime locations can have rental rates upwards of $80 per square foot annually. Investments in these assets have historically been considered stable, offering low vacancy rates and relatively high yields, usually between 4% and 8%.

However, these properties are also subject to economic cycles, and the recent shift towards remote work has led to an increase in vacancy rates in some cities. While many office buildings within the central business districts of cities have struggled, the "flight to quality" has kept many of the best and most amenitized buildings well-leased.

Key factors in this market include accessibility, quality of the building, and the presence of amenities. Experts and specialized staff like property managers and leasing agents are often needed for optimum operation.