2019 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 office markets fell in the third quarter of 2019 by 37.3 percent on a national level, according to CoStar Group data. Compared to the same timeframe in 2017, national rates fell by 26.2 percent. Regionwide, the most significant decrease on a year-over-year basis came from the Midwest, where absorption dropped by 86.5 percent. Office net absorption decreased by 62.8 percent in the Northeast, followed by the West with a 16.7 percent decrease. Absorption registered the smallest drop in the South (down by 9.7 percent). Forecasts for absorption in the office sector for the third quarter of 2020 indicate that rates are expected to decrease in some regions. Net absorption rates are projected to drop by 12.9 percent on a national level. The most significant rise in absorption is expected to come from the Midwest (up by 148.7 percent), followed by the Northeast (up 1.9 percent). Absorption rates are expected to decrease by 30.2 percent in the West, while the South is set to record a 16.5 percent drop in the third quarter of 2020.

—Posted on Nov. 18, 2019


In MSF

Source: CoStar Group Inc.

Year-over-year, net absorption rates in the second quarter of 2019 inched down for office markets by 7.9 percent on a national level, according to CoStar Group data. Compared to the same interval in 2017, national rates dropped by 23.7 percent. Region-wide on a year-over-year basis, the most substantial change came from the Midwest, where absorption was down by 56.8 percent. Net absorption was also down in the West, but by far less—only 3 percent. The Northeast posted a surge of 14 percent in net absorption, followed by the South, up by 7.8 percent. Forecasts for the second quarter of 2020 show that office net absorption rates are projected to decrease in every region. The most significant drop is expected to come from the West (down by 42.3 percent), followed by the Northeast (down 40.7 percent), the South (down 22.4 percent). The smallest shift is expected to come from the Midwest (down 11.5 percent). Net absorption rates are expected to fall by 31.6 percent on a national level.

—Posted on Aug. 22, 2019


In MSF

Source: CoStar Group Inc.

Net absorptions decreased for office markets year-over-year in almost every region in the first quarter of 2019, according to CoStar Group data. The most substantial drop came from the Midwest (down by 25.9 percent), followed by the South (down by 17.8 percent) and West (down by 9.4 percent). The only growth came from the Northeast, where net absorptions increased by 2.0 percent. Office net absorptions decreased by 13.4 percent on a national level. Compared to the first quarter in 2017, national rates dropped by 32.2 percent. Forecasts for the first quarter of 2020 show that office net absorptions are projected to decrease in almost every region. The most significant drop is expected to come from the Northeast (down by 37.2 percent), followed by the Midwest (down by 34.1 percent) and the West (25.8 percent). The only growth is expected to come from the South (up by 4.9 percent). Net absorption rates are expected to drop by 18.8 percent on a national level.

—Posted on May 29, 2019