The latest numbers on net absorption provide encouraging news for the U.S office sector. Data for Q3 2021 shows that net absorption, which measures the change in occupied office inventory,...
Third quarter net absorption in the New York Metro totaled 1.3 million square feet. This includes 870,435 square feet of positive absorption in Manhattan. Two years have elapsed since Manhattan last saw positive absorption.
Other leading office markets with positive absorption in Q3 2021 include Boston, Dallas and Seattle. Second-tier markets with healthy positive absorption in Q3 2021 include Austin (846,910 square feet), Nashville (590,690 square feet), Salt Lake City (385,745 square feet) and Las Vegas (289,320 square feet).
On the downside, Chicago and Los Angeles remain two of the more challenged major office markets, both posting over one million square feet of negative absorption in the third quarter. Detroit and Philadelphia also saw significant occupancy losses of around 680,000 square feet in each market.