
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.
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