Q4 2022 U.S. office market overview

The U.S. economy became more distressed in November and December, marked by more than 60,000 tech layoffs and a sudden 58.8% drop in office job postings from November to December – predictive indicators of office demand. Tepid leasing activity in Q4, -46.2% vs. the historical quarterly average, embodied how occupiers are navigating mounting economic distress and evolving workplace strategies as return-to-work levels are just 42.1% relative to the same period before the pandemic. Still, efficient, sustainable and amenity-rich offices are substantially outperforming the broader market, accentuating a trend that has persisted in recent years.