It won't be until next year that net office space absorption is projected to turn positive in 2024 and will total approximately 30.6 million square feet for the year, according to a report this week from NAIOP.
The forecast accounts for the possibility of a recession in 2023 (a 60% likelihood), with economic growth in 2024 expected to support a recovery in the office market.
NAIOP reported a 17.8% vacancy rate in office space through the first quarter of 2023, its highest level since Q2 1993. Average office occupancy across the 10 metropolitan markets tracked by Kastle Systems remains at only 49.9%.
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