The US office market continued to build momentum after turning a corner in the second quarter after five straight quarters of negative net absorption. During the third quarter, the office market posted 4.9 million square feet of positive net absorption following 1 million square feet of positive net absorption during the second quarter.
Given this momentum, net office space absorption in the fourth quarter is expected to reach 9.4 million square feet followed by 10.8 million square feet of positive net absorption in 2025, according to NAIOP’s fourth quarter office demand forecast. The risk of recession appears to have diminished, and it is possible recent positive absorption can be attributed to structural improvement in demand that could persist over the next two years, the organization said.
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