📊Colliers — U.S. Office Market Outlook Q2 2025

📝CRE360 Take:
Colliers’ Q2 office outlook suggests the sector is stabilizing. Average asking rents are flattening after pandemic-era declines, and construction pipelines are historically low at just 31M SF nationally. A flight-to-quality persists, with top-tier space absorbing demand. The report frames this as groundwork for recovery.

CRE360 agrees stabilization is meaningful, but the gap between trophy and commodity offices is stark. Class A towers in prime submarkets are resilient, but Class B stock faces rising obsolescence. Vacancy remains historically high, and rent “stabilization” often means levels well below 2019 benchmarks. The report underplays how much demand hybrid work has permanently removed.

Signal: avoid broadly, prepare selectively. Most office exposure should be avoided until true demand recovery arrives. Investors should watch for distress sales and opportunities to reposition obsolete space, while trophy buildings may warrant selective bids. Recovery is years away — patience is key.

Publisher Credit:
Full report: Colliers — U.S. Office Market Outlook Q2 2025