Office Absorption to Recover in 2022, NAIOP Predicts

By Barbra Murray

Absorption in the U.S. office sector will remain negative through early 2021, according to the NAIOP Research Foundation’s latest Office Space Demand Forecast. But an about-face beginning in the second quarter of 2021 will lead to overall net gains by the third quarter of 2022.

A pandemic-induced recession is a different beast for the modern-day office sector, rendering predictions a complicated business.

“The unique ways that COVID-19 may affect demand for office space are difficult to forecast in a predictive model. Nonetheless, recent trends in office absorption suggest that office sector performance will continue to reflect economic conditions, as in past economic cycles,” according to the NAIOP forecast.

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