Class A Office Leasing Expected to Increase Amid Flight to Quality

Feb 17, 2022, 13:30 PM by Stefan Weiss
Class A office absorption in the U.S. between 2017 and 2019 was more than twice that of Class B and C, as occupiers sought high-quality space with the necessary amenities to attract and retain employees in an extremely tight labor market. Historical absorption data also suggest economic downturns like the one in 2020 are followed by a “flight-to-quality” trend.

While Q4 2021 data showed more evenly distributed absorption among all classes, anecdotal evidence, including CBRE’s Occupier Sentiment Survey, suggests occupiers prefer quality amenities offered by Class A buildings.

Changing workplace dynamics, accelerated by the pandemic, are further motivating occupiers to prefer higher-quality assets. Thus, CBRE expects Class A absorption to increase substantially, relative to Class B and C, in the coming quarters.

Visit CBRE’s Future of Work page to learn why demand is expected to increase for best-in-class office buildings.

COTW_02.16.22_final

Deconstructing CRE

279 posts

Last post : 03/20/2023

redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin play-btn line-arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard