U.S. Office Market Dynamics, Q3 2024
Tide beginning to shift for U.S. office as availability rate declines for first time in five years
- Jacob Rowden
The U.S. office market reached an important milestone in Q3—with the concurrent acceleration in leasing activity and slowdown of new supply, availability levels have begun to decline for the first time in over five years. Leasing activity continued to grow after establishing a post-pandemic high last quarter, and downsizing activity is steadily normalizing as tenants become more comfortable with their existing office footprints. At the same time, new supply has fallen dramatically, and a record volume of inventory is being removed for conversion and redevelopment, leading to a tightening office market nationally for the first time since 2019.
