Office Market Update

From Yardi Matrix

By Joel Nelson on Dec 18, 2019 in News

Here are some key findings in the most recent U.S. office property report from Yardi^® Matrix. All figures are as of October 2019 unless otherwise noted.

• Demand for office space remains strong, with office-using sectors adding 545,000 jobs over the past 12 months. One of every three jobs added in the 12 months ending in September were in office-using sectors.
• The average U.S. office asking rate increased 2% year-over-year.
• Per-square-foot prices for central business district buildings are 24.6% higher than in 2018. Prices for buildings with A+ and A ratings have increased 12.1% this year.
• Markets with the highest year-over-year listing rate growth were San Francisco, Tampa, Fla., the San Francisco Bay Area and Manhattan. N.Y.
• The national vacancy rate increased 40 basis points from the previous month, to 13.7%.
• Lower interest rates have helped accelerate transaction activity since the summer, with investment volume totaling $74 billion.
• Office space delivered nationally totaled 59.2 million square feet.
• 1 million square feet of space is under construction.

Get all the details in the Yardi Matrix national office report for November 2019.