Office Downturn Continues in Q3
- U.S. office market fundamentals deteriorated in Q3 with 33.5 million sq. ft. of negative net absorption—the largest quarterly decline since 2001.
- 89% of the negative net absorption year-to-date has been in California, Texas and the Northeast Corridor between Boston and New York.
- Total office leasing activity was down by 39% year-over-year in Q3 and the renewals share of all leases increased to 45%. However, Q3 leasing activity was higher than Q2 due to a mild acceleration in September.