Office landlords will continue to hemorrhage space over the next couple of quarters. 

NAIOP expects office net absorption to be negative 18 million square feet in Q4 2020 and negative 10 million square feet in Q1 2021, a downgrade from its prior office demand forecast. Already, office net absorption contracted 50.7 million square feet in the first three quarters of 2020, according to CBRE. 

Add the 50.7 million square feet contracted already with 28 million expected to be lost in Q4 and Q1 and the office market could be looking at a contraction that is more severe than the one experienced during the global financial crisis of 2008, according to NAIOP.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Leslie Shaver

Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.