Office market looks like it has 'reached a turn' in recovery from pandemic

The U.S. office market is recovering from pandemic challenges, with decreasing vacancy rates and increased leasing volumes. Julie Whelan from CBRE notes a significant turnaround, highlighting the first drop in vacancy rates since late 2021 and a peak in net absorption rates at 10.3 million square feet, the highest in three years. While stabilization has transitioned into recovery, Whelan warns that vacancy rates may not revert to pre-pandemic levels, as some offices could become obsolete or repurposed for new uses.

Whelan stated, "We have been careful to say that the last couple quarters, but I think now it feels that recovery is beginning for the market."

According to Whelan, "We were expecting that vacancy was going to stay pretty stable through this year, it does not mean that it's going to drop like a rock."

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