U.S. Office Fundamentals Soften as 2022 Closes
- U.S. office vacancy increased at a faster rate in the second half of 2022.
- Net absorption turned negative in Q4 2022, offsetting the occupancy gains earlier in 2022.
- Asking rents are mostly holding firm, but generous concessions remain on offer.
- Sublease space continues to rise and is at record levels.
- Supply-side risks are limited as construction activity continues to decline.
- Office occupancy levels are slowly increasing, with most firms adopting a hybrid work model.
- Annual sales volume fell in 2022, as investors recast their office strategies.
- The U.S. economic outlook remains subdued.
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