Office Space Demand Rebounds Amid Economic Crosswinds 

By Kathryn Hamilton, CAE | June 16, 2025

The U.S. office market is beginning to recover despite the broader economy presenting uncertain and mixed signals. Here’s a quick breakdown of the key takeaways from the latest Office Space Demand Forecast (download the full report) released by the NAIOP Research Foundation.

The U.S. office market is showing cautious signs of recovery. Q1 2025 marked the fourth straight quarter of positive net absorption, with 5.6 million square feet absorbed following 7.3 million in Q4 2024. The national vacancy rate held steady at 11.8%, while remote and hybrid work trends appear to have stabilized. More employers are requiring in-office attendance, gradually boosting office utilization.