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Office Market Outlook | Q4 2022

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U.S. Office Fundamentals Soften as 2022 Closes

Key Takeaways

  • U.S. office vacancy increased at a faster rate in the second half of 2022.
  • Net absorption turned negative in Q4 2022, offsetting the occupancy gains earlier in 2022.
  • Asking rents are mostly holding firm, but generous concessions remain on offer.
  • Sublease space continues to rise and is at record levels.
  • Supply-side risks are limited as construction activity continues to decline.
  • Office occupancy levels are slowly increasing, with most firms adopting a hybrid work model.
  • Annual sales volume fell in 2022, as investors recast their office strategies.
  • The U.S. economic outlook remains subdued.

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Office Market Outlook | Q4 2022

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Michael Lirtzman

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Highly experienced commercial real estate leasing broker, owner, operator and manager with proven expertise in office leasing, acquisitions, development, and asset management in Chicago as well as multiple other markets across the country, having held senior management and leadership positions with large scale developers and commercial real estate service firms. Directly responsible for building and managing leasing and operational teams in multiple markets across the country and executing over 3.5 million square feet of office lease transactions creating value for property sales well in excess of $3 billion.  Specific project experience includes office, industrial and multifamily acquisition, development, adaptive re-use and leasing execution in multiple markets, in addition to equity and debt placement in multiple asset classes in both institutional settings and private partnerships.

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