Net absorption continued to outstrip net deliveries for both industrial and retail, while apartment and office demand fell short of their respective supply counterparts. Although recovering, office has maintained a chronic struggle with demand since the pandemic, according to data by Nareit.
Office net absorption was 4.5 million square feet. This is the sector’s fourth consecutive quarter of positive demand following five quarters of negative values. Even at low levels, supply continued to exceed demand.
The seasonality of apartment demand is highlighted in the data. Net deliveries outpaced net absorption for the third quarter in a row. This followed three quarters of excess net demand being at its highest levels ever.
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