NAIOP Expects Growing Weakness in Office Demand

Originally published by Mark Heschmeyer on December 12, 2022, for CoStar News.

Any increase in a key measure of office demand in 2023 isn’t likely to occur, according to the latest projections from the commercial real estate association, NAIOP.

The difference between tenant move-ins and move-outs of leased space could continue to slow into 2024 as net absorption is hampered by economic uncertainty, the trade group said.

The national office market absorbed 6.6 million square feet during the second and third quarters of 2022, but the vacancy rate continued its climb to 17.1%, the highest level since the third quarter of 1993, according to the NAIOP's "Office Space Demand Forecast" for the fourth quarter of 2022 published by the NAIOP Research Foundation.

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