NAIOP Sees More Office Demand in 2024, Canada Wildfire Smoke Covers Parts of US, Mortgage Applications Fall

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NAIOP forecasters predict that U.S. office demand will rebound next year after several quarters in which more space was vacated than leased. (Getty Images)

By Lou Hirsh
CoStar News

June 7, 2023 | 8:37 P.M.

NAIOP Sees More Office Demand in 2024

A prominent industry group representing building owners and operators is projecting a rise in office demand in 2024, even as the beleaguered property category continues to see negative absorption for the rest of this year with more space being vacated than leased.

A report by two economists compiled for the National Association of Industrial and Office Properties, better known as NAIOP, projects the U.S. will finish 2023 with office demand at negative 24.4 million square feet. That would be slightly worse than the negative 21.3 million square feet through the end of 2022 and the first quarter of 2023, when national office vacancy hit its highest rate in nearly 30 years at 17.8%, according to a NAIOP forecast released Wednesday.