CoStar lowers U.S. office vacancy forecast to 13.6% for year-end
CSGP•CoStar lowered its year-end U.S. office vacancy forecast to 13.6% from 13.7%. It raised net absorption forecasts to 20 million square feet in 2026 and 9 million in 2027, while forecasting rent growth of 2.5% annually over the next few quarters.
1. Updated office forecasts
CoStar lowered its year-end U.S. office vacancy forecast to 13.6% from 13.7%. It raised its 2026 net absorption forecast to 20 million square feet from 13 million and its 2027 forecast to 9 million from 5 million. Asking rents are forecast to grow 2.5% annually over the next few quarters, accelerating above 3% toward the end of 2027. A sharp slowdown in new construction is limiting desirable office space, supporting rent growth despite high vacancy.
