New Report: Office Space Absorption Projected to Stabilize by Mid-2022
May 26, 2021
The NAIOP Research Foundation has published the NAIOP Office Space Demand Forecast for Q2 2021.
Read the report
- Increasing COVID-19 vaccination rates and strong economic growth will help demand for office space rebound, with a return to positive net absorption forecast for the fourth quarter of 2021.
- Quarterly net absorption in 2022 is forecast to average 11.7 million square feet, in line with the 2015-2019 quarterly average of 11.6 million square feet.
- Although tenants have begun to return to the office, it remains to be seen how widely they will adopt long-term remote work arrangements. Remote work will likely limit net absorption for the next several quarters.
- Tenants may now prefer less dense office layouts than before the pandemic, partially offsetting declines in demand due to remote work.