Office Midyear Outlook
More Aggressive Demand for Space Likely as Clarity Emerges
Economic improvement aids office sector. The U.S. economy has gained traction since inoculations became widespread. As most states peel back restrictions, the list of companies that have weathered the health crisis intact is growing and business profitability is rising. Corporate profits have stayed elevated after reaching a 20-year peak in mid-2020, while the cost of borrowing remains near historical lows, laying the foundation for company expansions in the quarters ahead. After delaying onboarding in 2020, many businesses are hiring once again. During 2021, roughly 6.5 million workers are expected to be added to payrolls nationwide, including more than 1 million in traditionally office-using sectors.