Office Sector Stabilizes on Demand for Class A Space
Companies seeking Class A office space are leading a stabilization of the commercial office market after the shock of the pandemic, according to the newest NAIOP Office Space Demand Forecast.
Although the first quarter saw office vacancies continuing to climb for the 10th straight quarter, new completions may be a factor. NAIOP projects that absorption of new space will remain positive.
Net office space absorption in 2022’s remaining three quarters is forecast at 46.9 million square feet. Total net absorption in 2023 is projected at 47.3 million square feet, with 6.5 million square feet absorbed in Q1 2024.
“We are fortunately seeing that even as the work week gets reshuffled, and fewer employees are in the office at one time, companies still seek spaces for collaboration and for all employees to be at the office at least part of the week,” said Thomas J. Bisacquino, president and CEO of NAIOP.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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