Office landlords will continue to hemorrhage space over the next couple of quarters.
NAIOP expects office net absorption to be negative 18 million square feet in Q4 2020 and negative 10 million square feet in Q1 2021, a downgrade from its prior office demand forecast. Already, office net absorption contracted 50.7 million square feet in the first three quarters of 2020, according to CBRE.
Add the 50.7 million square feet contracted already with 28 million expected to be lost in Q4 and Q1 and the office market could be looking at a contraction that is more severe than the one experienced during the global financial crisis of 2008, according to NAIOP.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
