The drop in demand for North American office space deepened in 2023. Tenants in the United States shed 71 million SF in 2023, slightly more than in the Covid lockdown year 2020, as a renewed focus on efficient use of space led to further footprint reductions and higher overall vacancy. Demand for space in Canada also closed the year in the red. Since the beginning of 2020, U.S. net absorption has contracted by 188.6 million SF. By comparison, absorption losses associated with the Great Recession totaled about 50 million SF. Negative net absorption was 15,798,403 in Q4 and negative 71,081,718 SF for the year. The U.S. vacancy rate is at a record 13.7%, up 420 basis points since the pandemic hit. Read More…