The office market is projected to experience negative absorption through 2025, with a gradual improvement expected by late 2024. The first quarter of 2024 recorded a negative net absorption of 13.4 million square feet. Elevated interest rates, paused expansion plans, and structural shifts due to remote work are key factors driving this trend. Regional banks face significant refinancing challenges. Companies are returning unused space and shifting towards flexible, coworking spaces. Sustainability considerations are increasingly influencing lease decisions. The market is also seeing a divergence between Class A and lower-tier office spaces, reflecting varied adaptation to new work environments.