Office Market Stalls in an Uncertain Economy

The cautious outlook for office development follows a period of confidence in early 2022, when it was predicted that the office market would rebound, presenting opportunity for new development as companies emphasized office-centric work following pandemic-era restrictions. The latest survey finds that 29% of Southern California panelists and 20% of Northern California panelists are planning new office developments this year, compared to 48% and 50% in 2022, respectively, when demand was expected to grow alongside supply. However, those expectations did not materialize according to the latest survey, as 2022’s high interest rate environment impacted office market fundamentals.

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