1、U.S.Research Report|Q4 2022|Office Market Outlook|1U.S.Research Report|Q4 2022 Office Market OutlookU.S.Office Fundamentals Soften as 2022 Closes Stephen Newbold,National Director of Office Research|U.S.The U.S.office vacancy rate stands at 15.7%,an increase of 30 basis points in the fourth quarter.

2、Vacancy is still below the prior peak of 16.3%,seen at the height of the Global Financial Crisis,but will equal this level by mid-2023 if the current pace of vacancy increases is sustained.Net absorption,which measures the change in occupied office inventory,was positive in 43%of the metro office ma

3、rkets tracked in our national survey,down from 52%in the third quarter.National office absorption totaled negative 14.1 million square feet,more than offsetting the modest gains seen earlier in the year resulting in an annual net absorption total of negative 8.6 million square feet.Reflecting this s

4、hift in fortunes,12 metro markets posted negative absorption above 500,000 square feet.Occupancy losses in the fourth quarter were led by New York City(negative 4.3 million square feet),Greater Los Angeles(negative 1.8 million square feet)and Minneapolis(negative 1.5 million square feet).Conversely,

5、positive absorption was led by Baltimore,Orlando and Salt Lake City.There is a record 242.8 million square feet of sublease space available across the U.S.office market,up from 232.8 million square feet in Q3 2022,and significantly higher than the prior cycles peak of 143.3 million square feet seen

6、in Q2 2009.As firms continue to evaluate their post-COVID real estate needs,sublease space will remain a cost competitive,short-term option until there is greater clarity on business direction.Construction activity continues to slow.Currently,100.6 million square feet are underway,which is down 39%f