There are indications that U.S. office market fundamentals are set to shift in a positive direction, reports JLL. (For more on the office sector, see “Flipping the script.”)

“We are officially calling ‘bottom’ in the office sector as of Oct. 1,” says Mike McDonald, senior managing director and office platform co-lead at JLL Capital Markets. He notes the office market has reached an inflection point in third quarter 2024 not only from a leasing fundamentals perspective but also from a capital markets perspective, and that preliminary third quarter volume (excluding medical office buildings) is estimated to be $11.3 billion, an increase of 33 percent, year-over-year — “which would make office the fastest-growing segment out of all of the main property types.”

According to JLL, 2024 year-to-date volume