As the office market continues to search for stability in the wake of COVID-19 disruption, there are signs the sector's rapid descent could be slowing but indicators are mixed from market to market.

Momentum in office net absorption across major markets ebbed somewhat during the first quarter, shifting back into the red after posting the greatest three-month total since 2021 during the fourth quarter of last year, according to Marcus & Millichap's second quarter national office report. Only 11 markets had reductions over 500,000 feet, and the markets with increasing vacancy had minimal quarter-over-quarter adjustment, the report said. Meanwhile, 18 of the 50 markets studied reported falling or flat vacancy during the first quarter, led by San Jose with a drop of 90 basis points.

Half of the major markets studied are on track to receive more than 1 million square feet of new office space this year, primarily concentrated in eight markets including Boston, New York City, Dallas-Fort Worth and Austin. Marcus & Millichap said some new projects could be tabled as construction costs remain high.