New Report: Office Space Demand Forecast for Q2 2016

The NAIOP Office Space Demand Forecast (released semi-annually in Q2 and Q4), forecasts net absorption in square feet over eight quarters. Key findings from the latest report are as follows:

  • The national office market is forecast to absorb approximately 34.6 million square feet of space in 2016, down from 62.1 million square feet in 2015, as economic growth flattens in the U.S.
  • GDP growth, which slowed to 0.5 percent in the first quarter of 2016, is forecast to remain low, near 1 to 2 percent annualized growth, with the lower boundary of the GDP forecast dipping into slightly negative territory.
  • The current forecast projects net absorption of office space to regain some strength in 2017, totaling approximately 46.2 million square feet. However, this figure could change, depending on how the economy fares throughout the rest of 2016.

Read the Office Space Demand Forecast, Second Quarter 2016 online, and learn more about how you can support the work of the NAIOP Research Foundation.

Click here to view the Current Forecast.

NOTE: This forecast was published before the United Kingdom’s vote on June 23, 2016, to withdrawal from the European Union. The next Office Space Demand Forecast, published during Q4 2016, will reflect the current market conditions and any economic instability caused as a result of the event.

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