Office Market Outlook | Q4 2022

by | 21 February 2023

U.S. Office Fundamentals Soften as 2022 Closes

Key Takeaways

  • 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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