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NAIOP: Office Demand Surged in Q3 After Negative Absorption in Q2
National demand for office space surged in the third quarter of 2025, the NAIOP Research Foundation reported. The sharp reversal from absorption trends earlier in the year may signal the beginning of a broader market recovery, according to the foundation’s Office Space Demand Forecast, Fourth Quarter 2025.
Net absorption grew by 19.8 million square feet nationwide in Q3, compared to 14.9 million square feet of negative absorption recorded in Q2, marking the strongest quarter for office space demand growth since 2022. However, the report noted that demand remains nearly flat on a year-to-date basis, increasing by only 600,000 square feet, because early 2025 saw declining leasing activity.
“While the third quarter’s rebound is a promising sign, the office market remains at a pivotal ‘normalization’ point,” said Marc Selvitelli, CAE, president and CEO of NAIOP. “Firms are making more deliberate, long-term decisions about their space needs, and this report underscores the complexity of those decisions in the current economic climate.”
- ◦Lease
