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.