The U.S. office sector continues to endure challenges due to the ongoing pandemic. In Q2, office vacancy rose by 70 bps, and negative net absorption reached 20 million square feet among CBRE EA’s tracked Sum of Markets.
Given the current uncertainty in the economy, labor and financial markets, and public health, CBRE EA offers its clients a range of scenarios. We expect U.S. office vacancy to rise from its current 13% to 14.3% within a year in our Baseline scenario and 15.4% in our Downside scenario. Rents are expected to decline by 4% over the next year in our Baseline and by over 9% in our Downside.
Given the current effect of the office sector’s freeze due to lock down measures, new remote work policies and changes in densities due to social distancing, investors are advised to comprehensively evaluate their positions, markets and properties.READ THE Q2 2020 MACRO OUTLOOK