Is Office Demand or Demolition creating a surge in Office Absorption? Office vacancy is dropping, but not necessarily because demand is booming. 23.2 million square feet of office space has been demolished or converted to residential condominiums and apartments. Instead of a leasing surge in office, it is more of a structural rebalancing. Tenants still have leverage, especially in Class B and older buildings. because falling vacancies are being driven by building removals, n