Q4 2021 | Office Market Outlook

by | 16 February 2022

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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