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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