Our latest report  takes a close look at the top U.S. office markets and the impact each has experienced from COVID-19. Following a second quarter that provided clear evidence of the pandemic-driven downturn, the leading U.S. office markets saw even greater contraction in Q3 2020. Net absorption was negative across all but one of the top 10 markets, with vacancy rising in the remaining nine. The first signs of an erosion in asking rents are also being seen, as rising levels of sublease space continue to enter the market.

Looking forward, the extent and duration of the current office downturn is largely dependent upon the continued severity of the pandemic and the development and widespread introduction of an effective vaccine and/or therapeutics. At that point, the economy and business confidence should improve, resulting, albeit with a lag effect, in an uptick in office market fundamentals.