The U.S. Office Market Continues to Stabilize
Key Takeaways
- The U.S. office vacancy rate continued to level off in Q4 2021.
- Net absorption increased and was positive for the second successive quarter.
- Asking rents are mostly holding firm, but concessions have increased.
- Sublease space levels declined again in the fourth quarter but remained elevated.
- Supply-side risks are diminishing as speculative construction continues to slow.
- Sales volume is approaching pre-pandemic levels.
- Office occupancy looks set to increase in the weeks ahead.
- The U.S. economic outlook for 2022 is broadly positive, pending short-term concerns.
- California and Florida are projected to lead the economic recovery.
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