Madison Street Beat

A look at key metrics for Madison’s Office Space Market – Q2/23

MADISON STREET BEAT– Q2/23

Madison office occupancy continues to outperform the national average due to low levels of speculative new supply and continued demand from the healthcare, biotech, and government sectors. Year over year occupancy levels remain mostly unchanged and appear to be stabilizing. While the number of lease transactions is beginning to resemble prepandemic activity, the overall space demand has decreased with tenants opting for smaller, but higher quality workspaces.

Sales volume in Q2 2023 was limited to a few smaller transactions after an active second half of 2021 and 2022. Increases in interest rates have made investment deals tougher to pencil out, in addition to increased lender scrutiny of office transactions.

Madison Office Occupancy Q2 23

Net Office Absorption Q2 23

Sales Volume Q2 23

Madison Street Beat is a snapshot of key metrics for the Madison area office space market developed by Compass Properties. Information contained in this report is general with regard to the subject matter and should not be construed as a recommendation to make any real estate investments or any other financial transactions. Neither Compass Properties nor any of its employees and agencies warrant the accuracy or assume any liability for information contained in this report.