The U.S. office sector passed a key milestone in the fourth quarter of last year, registering its first quarter of positive net absorption since 2021.
That’s the good news from JLL’s fourth quarter 2024 U.S. Office Outlook, released earlier this year.
According to JLL, U.S. office occupiers leased 52.9 million square feet of space in the fourth quarter of last year. That established a post-pandemic high for the third straight quarter.
The fourth quarter also represented a quarter-over-quarter growth of 4.9%. Even more impressive, leasing activity was 17.6% higher in the fourth quarter of last year than during the same quarter of 2023.
Office leasing activity is still lower than it was before the COVID-19 pandemic, but activity is catching up. JLL reported that office leasing activity in the fourth quarter of last year surpassed 92% of pre-pandemic averages.
At the same time, sublease activity is falling rapidly, according to JLL. Four of the last five quarters have seen less sublease space hit the market than the monthly average since 2020.
JLL reported that the United States’ office sector recorded 276,400 square feet of positive net absorption in the fourth quarter. That represents a marginal gain in occupancy, but still provides an emotional boost: It’s nice to see a quarter end with positive office absorption.
