Space Demand Forecasts

The Industrial Space Demand Forecast for the U.S. is issued quarterly by NAIOP and is based on an accurate model. The Forecast assists developers and investors to make more prudent decisions about the timing of new development projects.

Due to the turmoil in the national economy, rising unemployment and continued uncertainty about future work arrangements, the U.S. office market absorption is forecast to decline into negative territory through the second quarter of 2021. The steepest declines may be experienced in the third quarter of 2020, with NAIOP’s model forecasting a drop of 16.3 million square feet. Absorption rates will increase as the economy begins to gain traction in 2021.