National Office Tour/Leasing Velocity

Curious if any of you can chime in on what you’re seeing across the US?

I work in consulting, have access to some national data around tours, economics on proposals, and tail end of the funnel leasing velocity.

Right now all you hear in most meetings is flight to quality which has generally held true in the data I’m seeing and the markets we cover (biased towards gateway markets). Actually seeing rent growth or at the least stability in the top 5-10% of assets (by starting rents and to a lesser degree by NERs). Outside of the top of the market, it’s looking grim (few tours, essentially zero deal flow, more conversion talks), and even higher quality assets in less desirable submarkets are not seeing enough activity to churn through the substantial vacancy/availability rates which is likely going to cause some pain.

At the core of the question, what I’m really interested to hear, is how bad do you guys think this will get over the next 6-12 months?

Looking at earnings reports for Q2 it appears there wasn’t much pain yet, but seeing more mentions of fire sales closing in Q3 that will have a negative effect on FFO, etc.