Office Update

Via Yardi Matrix

By Joel Nelson on Apr 24, 2019 in News

What’s new in the U.S. office market? Lots, according to a new report from Yardi Matrix.

In summarizing the sector’s performance in the first quarter of 2019, the report notes that:

• Robust supply absorption produced a 1% increase in asking rents.
• Nearly 9 million square feet of office space came online through February, 7.9 million square feet of which was Class A.
• The national vacancy rate remained at 13.7%.
• San Francisco and parts of New York City led the asking rent increases, with changes in most metros being fairly minor.
• Only $13.3 billion dollars’ worth of deals were closed in the quarter, the lowest quarterly total since 2013. Seasonality, a carryover from fourth quarter capital market volatility and the federal government shutdown all contributed to the sales slowdown.
• About 174.3 million square feet of office space was under construction as of March, with Manhattan, N.Y., and San Francisco having the most with 23 million square feet and 11 million square feet, respectively.

There’s much more insight in the full Yardi Matrix national office report.