Net office space absorption for the duration of 2023 is expected to come in at around 8.1 million square feet, according to a new survey published by the NAIOP Research Foundation.
That 8.1 million figure is up from the 6.6 million square feet absorbed during the second and third quarters of 2022, during a time in which the nation’s office vacancy rate reached 17.1% -the highest recorded level in three decades.
According to press release issued by the foundation the recent completion of new office space has outpaced absorption. “A deeper look into the numbers reveals an appetite specifically for high-quality office buildings, which may support leasing activity in newly completed buildings despite continued weakness across the office sector.”
The survey also reveals concerns of a 2023 recession: “Occupiers are growing more cautious, opting to sublease space and choosing smaller footprints when leases come up for renewal.”
Hesitation in the commercial office space market comes as a new Gallup poll reveals that 40% of Americans now regard economic issues as the “nation’s most important problem.” That figure is dramatically up from the 10% of who felt the same in late 2020.
Despite the recent uptick in recession fears, the most recent Gallup numbers pale in comparison to early 2009, on the cusp of the Great Recession, when a massive 86% said they regarded economic issues as the most important issues in the country.
By Garry Boulard
