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Office Market Sees First Positive Net Absorption Since 2021

Leasing = hits post-pandemic record for third consecutive quarter amid shifting strategies.

By Erika Morphy | January 10, 2025 at 04:38 PM

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.

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