2020 National Office Absorption

Year-over-year office market conditions compared nationally and by region, updated quarterly.

In MSF

Source: CoStar Group Inc.

Year-over-year, net absorption rates for national markets decreased by 36 percent on a national level in the fourth quarter of 2019, according to CoStar Group data. Compared to the same interval in the fourth quarter of 2017, national rates dipped by 29 percent. Regionwide, the most considerable decline on a year-over-year basis came from the Midwest, where absorption fell by 67 percent. Office net absorption dropped by 33 percent in the South, followed by the West with a 32 percent decline. Absorption rates registered a 23 percent drop in the West—the smallest decrease regionwide.

Forecasts for absorption in the office sector for the fourth quarter of 2020 estimate that rates are expected to increase in almost every region. Net absorption rates are projected to increase by 4 percent on a national level. The most notable expansion is expected to come from the Midwest, up by 57 percent. Absorption rates are expected to increase by 5 percent in the South and West. The only drop is anticipated to come from the Northeast, down by 19 percent.

—Posted on May 29, 2020

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