2A — December 2024 — M id A tlantic Real Estate Journal
www.marej.com
M id A tlantic Real Estate Journal
M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman VP, Conference Producer .............................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnists ...Marcia Kaufman, Bayport Funding Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 36, Issue 12 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 www.marej.com
STAY CONNECTED WITH MAREJ
NAIOP Office Space Demand Forecast
W
ASHINGTON, DC — Net absorption of office space turned
positive in the second and third quarters of 2024, follow - ing five consecutive quarters of shrinking demand. Although it is still possible that a reces - sion could delay a recovery, recent trends suggest the office sector is stabilizing and that demand for office space will grow modestly in 2025, accord - ing to the NAIOP Research Foundation’s Office Space Demand Forecast. The report was authored by Hany Guirguis, Ph.D., Man- hattan College and Joshua Harris, Ph.D., CRE, CAIA, Fordham University. Net absorption is the amount of space occupied less the amount that is vacated in a given period. According to the report, office space absorption was 1 million s/f in the second quarter of this year and 4.9 million s/f in the third quarter. “Net office space absorption in the fourth quarter of 2024 is expected to be 9.4 million s/f, with another 10.8 million s/f of positive absorption for the full year in 2025 and 3.9 million
All about the MAREJ
s/f of positive absorption in the first three quarters of 2026,” said the report. The authors note that the of - fice market has benefited from the sustained outperformance of the macroeconomy and jobs market, and some prominent firms have indicated they are requiring workers to spend more time in the office than in prior years. Recent positive ab - sorption should be seen as an encouraging sign that demand for office space has begun to stabilize, though anemic de - mand growth has yet to catch up with new construction. According to data provider CoStar , 17.0 million s/f of net new space was delivered in the second and third quarters of 2024, resulting in a small in - crease in the average vacancy
rate, from 11.7% to 11.8%. The pace of new deliveries has slowed from 27.1 million s/f delivered over the second and third quarters of 2023. “We’re pleasantly surprised to see positive absorption in the office market, driven by demand in the tech sector and the decisions of many companies to bring their teams back to the office,” said Marc Selvitelli, CAE , president and CEO of NAIOP. “We are optimistic that these prove to be durable trends.” The NAIOP Research Foun - dation was established in 2000 as a 501(c)(3) organiza - tion to support the work of individuals and organiza - tions engaged in real estate development, investment and operations. MAREJ
DAILY BLOG Additional Visibility Updated daily; our commercial real estate blog will give increased visibility to all articles & advertisers in our issues. CONFERENCES Promote your business with sponsorships, plaques, booths and speaking opportunities at MAREJ sponsored conferences. Another Way to Promote
PRINT & DIGITAL The Classic & The New Keep up with the commercial real estate industry through our print and digital editions, publishing bi weekly.
NEWSLETTER
Opt-in weekly emails with industry and MAREJ updates and announcements. Updates & Announcements
SOCIAL MEDIA Stay up to date with us and the industry on all these social media platforms. Updated regularly; like & follow us to get an in depth view on everything commercial real estate. Networking on the Fly
CRE TV
Invest in your own dedicated channel to be placed on your website. When you send us your press releases, we will create an engaging on-camera segment featuring your company and or project either live in-studio, on- site or via satellite. Having your own TV channel will increase your domain authority! Be a guest on CRE TV
Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.
Contact: NEIL A. STEIN • nstein@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2469 • kaplaw.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart Attorneys at Law
lea@marejournal.com marej.com | 781.740.2900
Made with FlippingBook - Online catalogs