JLL’s Q3 Office Outlook: Promising signs for the office market

Tenant demand is stabilizing. Despite the Delta variant and slower re-entry timeframes than expected, tenant demand remains firm for quality space that meets health, safety and flexibility needs, according to JLL in its third quarter office outlook report.

Although still negative, net absorption slowed for the third consecutive quarter. Notably, the negative 7.3 million square feet recorded in third quarter was the first post-pandemic quarter below the negative 10 million-square-feet threshold.

Overall, gross leasing volumes rose by a further 7.8 percent in third quarter, approaching 40 million square feet for the first time since the onset of the pandemic. Momentum was particularly strong in lower-cost secondary markets, including in the Sun Belt and the West, which saw a jump of 18.7 percent over the quarter.

To read the full report, click here.