Skip to Content

Q3 2022 U.S. Office Real Estate Market Report

With the future of a physical office space in question, sublease space is available at an all-time high. Learn more in our real estate market report.
Skyline of Austin, Texas, to represent National Office Real Estate Market Report

The office market registered negative net absorption for the second consecutive quarter but recorded its third consecutive quarter with over 100 million SF in leasing volume. There is currently a record-high amount of sublease space available on the market, placing further downward pressure on asking rents. Uncertainty continues to cloud the market as organizations big and small consider the role of the physical workplace in their future. A national trend has yet to emerge, but one will be revealed as leases expire over the next several years.

National office real estate trends

  • The pool of sublease space available is currently at a record-high 230 million SF, up almost 16% from Q4 2021
  • Leasing volume has exceeded 100 million SF for the fourth consecutive quarter
  • Landlords and owners are granting free rent and generous tenant improvement packages in lieu of lower rent
  • New construction starts for office developments have slowed considerably: pre-pandemic construction starts averaged $24 million quarterly, while construction starts after the pandemic onset average $14 million quarterly
  • Sales volume remains strong as investors seek well-leased buildings with creditworthy tenants (“trophy” assets)
  • With the Federal Reserve raising the policy rate by 225 basis points since March, the threat of a recession is looming over business decisions

Download the in-depth market report to learn more

If you’d like to learn more about the nation’s office real estate outlook, download the full report below. This report will give you full insight to the topics mentioned above along with a variety of other statistics to help you stay ahead of market trends.

Information contained in this report is provided, in part, from third-party sources, including Cresa, the U.S. Bureau of Labor Statistics, the Bureau of Economic Analysis, Real Capital Analytics, and CoStar Group. Even though obtained from sources deemed reliable, no warranty or representation, expressed or implied, is made as to the accuracy of the information herein.

Related Thinking

Graphic and logo for Plante Moran Realpoint.
September 18, 2023

Plante Moran affiliates announce expansion of real estate consulting practice with launch of Plante Moran Realpoint

Press Release 2 min read
Interior of manufacturing facility
July 14, 2023

Q2 2023 U.S. Industrial Real Estate Market Report

Article 1 min read
View up through a skylight to see a skyscraper against a blue sky
July 13, 2023

Q2 2023 U.S. Office Real Estate Market Report

Article 10 min read