Office Market Sector Expected to See Negative Absorption Rates Until Late 2021: NAIOP

By Scott Baltic

National economic upheaval and surging unemployment will push U.S. office market absorption into negative territory through the second quarter of next year. That’s according to the NAIOP Research Foundation’s Office Space Demand Forecast for the second quarter.

NAIOP anticipates that the steepest declines could happen in the third quarter, to the tune of about a 16.3 million-square-foot drop. The research does, however, expect that absorption will increase as the economy starts to regain its footing in 2021.

Since various states began to issue stay-at-home orders in March, the pandemic “has markedly altered the U.S. macroeconomic landscape,” the forecast notes. Over that period, nearly 1.8 million COVID-19 diagnoses have been confirmed and more than 100,000 Americans have died.

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