5 Key Insights as the Office Market Shifts:

1- Demand recovery continues 

• Leasing activity maintained strong momentum from Q2, growing 0.4% quarter-over-quarter (QoQ) to 50.4 million s.f. Leasing over the past six months reflects 86% of pre-pandemic activity levels. 

2- Availability declines as demand improves

 • Net absorption improved by 10% QoQ to -8 million s.f., and downsizing rates continue to moderate, helping the U.S. to reach an important milestone: the total availability rate fell 41 basis points (bps) QoQ. 

3- Rents and concessions show little movement 

• Direct asking rents continue to grow year-over-year (YoY), though growth is slowing.

• Concessions remain elevated, but more activity is shifting to capital-light transactions. 

4- Supply pipeline aggressively balancing market

• Groundbreaking volume continues to descend from all-time lows, while inventory removals have reached record volume for the fourth consecutive year. Overall inventory declined by 2.7 million s.f. QoQ. 

5- RTO momentum remains despite hybrid’s dominance 

• Office attendance rates reached a post-pandemic record in Q3 2024, and large employers continue to progress policies, with some indications that executive sentiment is shifting in favor of office use.

ALL DATA ABOVE OBTAINED FROM JLL RESEARCH - US Marker Dynamics 2024 Q3

For a deeper dive on market shifts for office space CLICK HERE....

https://www.greggmetcalf.com/post/shifting-office-space