The U.S. office market is at a critical juncture. Following close to two years of pandemic-driven correction, signs of stabilization emerged in the second half of 2021, with positive net absorption for two successive quarters.
However, the market took a pause in Q1 2022. Absorption was slightly negative at -534,000 square feet, while vacancy ticked up by 20 basis points to 15%. These modest changes are not seen as indicative of a downturn in the market. Stabilization is set to continue as more employees return to the office in the second and third quarters.
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