Most Cities See Gains In Office Absorption, But It Could Be Short-Lived

Companies are eating up more office space than they’re leaving empty in more U.S. cities than a year ago, following the overall U.S. market turning positive for the first time in two years.

During the second quarter, 37 out of 64 major U.S. office markets posted positive net absorption, the industry term for when companies lease more space than they empty, compared to 23 markets a year prior, according to a CBRE study released Wednesday.

The last time more U.S. cities saw positive absorption was in the second quarter of 2022, when 41 U.S. office markets tracked by CBRE posted absorption gains.

The report follows VTS` most recent Office Demand Index, which showed a sustained expansion in the number of square feet companies were seeking in the U.S. office market, up 34% since the bottom of December 2022, GlobeSt reported...

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RSK: It is all going to level out in the long run. Yes, there may be less space utilized in the office sector but rents will slowly increase to cover costs....even the not so trophy properties. Super leveraged properties however, will suffer.