Despite uncertainties about the economy, net absorption of office space was positive for a fourth consecutive quarter, and demand is projected to continue to grow for the rest of 2025, according to the NAIOP Research Foundation’s Office Space Demand Forecast.
According to the report, first-quarter absorption totaled 5.6 million square feet, following 7.3 million square feet absorbed in the fourth quarter of 2024. With employers’ use of office space stabilizing, the biggest determinant of demand going forward will be the rate of growth in office employment.
“These consecutive quarters of positive absorption are a promising sign that the office market is finding its footing,” said Marc Selvitelli, NAIOP president and CEO. “While uncertainty remains in the broader economy, this trend reflects growing stability and adaptability among office users as employers and employees alike are recalibrating how they use office space.”
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