Originally published in June 2023 by Hany Guirguis, Ph.D., Manhattan College and Michael J. Seiler, DBA, College of William & Mary for NAIOP.
Demand for Office Space Expected to Shrink Through Early 2024
The national office market experienced total negative net absorption of 21.3 million square feet through the fourth quarter of 2022 and the first quarter of 2023, bringing the vacancy rate to 17.8 percent, the highest level since the second quarter of 1993.1 The COVID-19 public health emergency officially ended in the United States on May 11, 2023, but remote and hybrid work arrangements remain largely in place and continue to negatively affect demand for office space.