Vacancy is a sypmtom

Anyone involved with the process of buying, leasing, selling, or renting nonresidential properties, such as office or retail space, has inventory.  Does their inventory align with market-demand?  In most cases, the answer is no.  JLL's Global Real Estate Health Monitor reported that Washington, DC had a negative 39.7% leasing recovery during Q1 of 2023.  In that same time frame, Washington's vacancy rate of 20.7% was only surpassed by San Francisco; which had a vacancy rate of 26.4%.  Is this purely the result of pandemic related shifts in the need for office and retail space? No.  Excess inventory means higher operating expenses (carrying costs).  Empty building space does not translate to increased profits.  Hoping for a renewal in tenants with a shrinking labor pool is not a strategy.  Cities have to regain their balance between housing and office space in order to increase their hopes for remaining competitive to draw top talent across industries.