2019 National Office Absorption

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