
NAIOP Forecasts Further Tapering in Office Space Absorption
Given occupancy trends and concerns about a potential recession in 2023, net office space absorption in the fourth quarter of 2022 is forecast to be 7.1 million square feet nationally, according to the NAIOP Office Space Demand Forecast for Q4 2022, recently published by the NAIOP Research Foundation.
Absorption in 2023 is forecast to slow to 8.1 million square feet for the year. Moving forward, the forecast projects absorption of 13.3 million square feet in the first three quarters of 2024.
“A full return from remote working seems unlikely, but the office market will continue to adapt and evolve as new work patterns are established and the economy stabilizes,” said Marc Selvetelli, president and CEO of NAIOP.
A deeper look into the numbers reveals an appetite specifically for high-quality office buildings, which may support leasing activity in newly completed buildings despite continued weakness across the office sector.
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