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Q2 2023 U.S. Office Real Estate Market Report

July 13, 2023 / 10 min read

The adoption of hybrid work continues to lessen the amount of office space needed by in-person organizations. Record-high amounts of available sublease space are placing further downward pressure on asking rents across the country.

The office real estate market remains subdued as industry players across the country settle in for an extended down period of demand. So far this year, tenants have vacated nearly 40 million square feet (SF) more than they have occupied, putting 2023 on pace for the largest amount of negative net absorption on record. Vacancy is at a record 13.2% and is predicted to continue climbing for the foreseeable future.

Older properties suffer from an extreme lack of demand. The future of the office real estate market is highly uncertain, exacerbated by the fact that 65% of leases are expiring over the next five years.

One bright spot of the office real estate market is Class A properties and buildings delivered since 2015, which have seen positive net absorption throughout the pandemic.

National office real estate trends

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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.

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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.

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