Office Demand Stays Positive for Second Consecutive Quarter

U.S. Office | Q1 2022

28 Apr 2022 1 Minute Read

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Executive Summary

  • Positive net absorption of 1.6 million sq. ft. in Q1 2022 was a marked improvement from a year ago, when the pandemic-ravaged office market suffered 32 million sq. ft. of negative net absorption.
  • Leasing activity totaling 45.8 million sq. ft. in Q1 was up by 26.3% from last year.
  • Construction completions totaling 11.8 million sq. ft. well outpaced net absorption in Q1, driving the overall vacancy rate back up to a pandemic-era high of 16.8%.
  • Average gross asking rent increased by 1.2% year-over-year to $35.10 per sq. ft.
  • Office-using jobs are above pre-pandemic levels and continue to grow at an impressive pace, which should support demand for space as health conditions improve and more employees return to the office.