Research

US Office Outlook – Q3 2022

US Office Market Statistics, Trends & Outlook

October 12, 2022
Contributors:
  • Jacob Rowden

As economic headwinds intensified in the third quarter, tenants adopted more defensive leasing postures, generally halting expansion plans or downsizing footprints to navigate the growing threat of recession.

Poor growth outlook over the short term will continue to hamper office activity through the end of the year, but tenant demand for quality will drive a robust market for high-end space, and the volume of lease expirations in coming quarters remains near all-time highs. Rapid increases in interest rates over the past several months have upended over a decade of historically low costs of capital, which is not only disrupting office investment activity but is limiting landlords’ ability to continue increasing concessions packages. Despite the challenging economic environment, office reentry levels reached a post-pandemic high in the second half of September following Labor Day, and remote work is showing signs of losing momentum as the labor market tightens. As the prospects for a more widespread return to office increase, this should help to counterbalance companies that are slowing their growth plans.

Download the United States Office Outlook - Q3 2022

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