U.S. office demand slows modestly in August

According to CBRE’s Pulse of U.S. Office Demand report, U.S. office demand slowed modestly in August. This reflected slower job growth and a resurgence in COVID-19 infections that delayed occupiers' return-to-office plans.

To gauge the pace of recovery, CBRE has developed three indices for the 12 largest U.S. office markets — Atlanta, Boston, Chicago, Dallas/Fort Worth, Denver, Houston, Los Angeles, Manhattan, Philadelphia, San Francisco, Seattle and Washington, D.C. Using CBRE data, these monthly indices measure tenants in the market (TIM), leasing activity and available sublease space. Together, they illuminate the state of office demand and provide early indications of when and where momentum may be shifting.

The U.S. TIM Index fell by 3 points in August to 83, near its May 2021 level. The U.S. Leasing Activity Index fell by 6 points to 71 but remained well above its pandemic-low of 52 in December 2020. On a positive note, the U.S. Sublease Availabili