Demand for office space saw a significant contraction in April, with 17 of 19 major markets experiencing a decrease. New tenants entering the market dropped by 23%, and square footage sought fell by 26%. This decline is similar to the 2023 banking crisis, with tariffs possibly playing a role in the current slowdown.

A report from JLL revealed a 2% decrease in office leasing demand for the second quarter. More square footage will be removed from the U.S. office market than added for the first time since 2018. Uncertainty surrounding tariffs, geopolitical tensions, and economic impacts are contributing to tenant hesitancy.

Equity markets have recovered from the initial shock of tariffs, but office tenants remain cautious. Geopolitical stresses and economic concerns are affecting the market. The future is uncertain, with unclear implications from tariffs and ongoing conflicts. No one knows what lies ahead, adding to the hesitation in the office market.

Read more at CNBC: Trump’s tariffs are hurting the office recovery