The US office market marked a turning point since the onset of the COVID-19 pandemic, with the fourth quarter of 2024 witnessing the first positive net absorption since Q4 2021, signaling a resurgence in office space demand. This milestone cited by JLL in a new report, comes as companies increasingly implement regular office attendance requirements, leading to a notable decrease in downsizing rates.
Leasing activity in Q4 2024 reached 52.9 million square feet, establishing a post-pandemic record for the third consecutive quarter. This volume represents a 4.9% increase quarter-over-quarter and a substantial 17.6% growth year-over-year, bringing leasing activity to over 92% of pre-pandemic averages.
The recovery appears to be spreading more evenly across different geographic regions, with Sun Belt markets leading the charge at over 95% of pre-pandemic activity in the last six months. Gateway markets have also shown significant improvement, reaching 76% of pre-pandemic activity in the latter half of the year.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
