Despite uncertainties about the economy, net absorption of office space was positive for a fourth consecutive quarter and demand is projected to continue to grow for the rest of the year, according to the NAIOP Research Foundation’s Office Space Demand Forecast.
Net absorption of office space is the amount that is occupied less the amount that is vacated. According to the report, “first-quarter absorption totaled 5.6 million square feet, which followed 7.3 million square feet absorbed in the fourth quarter of 2024.” This continued growth in demand for office space is due in part to the plateauing of remote work, as more employers require employees to spend more time in the office. With this stabilization in how employers use office space, the biggest determinant of demand going forward will be the rate of growth in office-using employment.
Disruptive changes to U.S. trade policy and growing concern about federal debt levels have dimmed the outlook for economic
