Brief | Adaptive Spaces
Class A Office Leasing Expected to Increase Amid Flight to Quality
February 16, 2022
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Class A office absorption in the U.S. between 2017 and 2019 was more than twice that of Class B and C, as occupiers sought high-quality space with the necessary amenities to attract and retain employees in an extremely tight labor market. Historical absorption data also suggest economic downturns like the one in 2020 are followed by a “flight-to-quality” trend.
While Q4 2021 data showed more evenly distributed absorption among all classes, anecdotal evidence, including CBRE’s Occupier Sentiment Survey, suggests occupiers prefer quality amenities offered by Class A buildings.
Changing workplace dynamics, accelerated by the pandemic, are further motivating occupiers to prefer higher-quality assets. Thus, CBRE expects Class A absorption to increase substantially, relative to Class B and C, in the coming quarters.
Visit CBRE’s Future of Work page to learn why demand is expected to increase for best-in-class office buildings.
CBRE Econometric Advisors, Q4 2021
While Q4 2021 data showed more evenly distributed absorption among all classes, anecdotal evidence, including CBRE’s Occupier Sentiment Survey, suggests occupiers prefer quality amenities offered by Class A buildings.
Changing workplace dynamics, accelerated by the pandemic, are further motivating occupiers to prefer higher-quality assets. Thus, CBRE expects Class A absorption to increase substantially, relative to Class B and C, in the coming quarters.
Visit CBRE’s Future of Work page to learn why demand is expected to increase for best-in-class office buildings.
FIGURE 1: Class A vs. B & C Absorption as % of Stock - U.S. Sum of Markets
CBRE Econometric Advisors, Q4 2021
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Dennis Schoenmaker, Ph.D.
Global Head of Forecasting and Strategic Insight, Head of Data Centre of Excellence
