U.S. Office Property Pipeline Stays Strong, Yardi Matrix Reports

First-half figures illustrate rising demand, employment, construction and
sales

SANTA BARBARA, Calif.,
August 7, 2019 – Strong demand
for U.S. office space and “a supply pipeline that shows no sign of slowing
down” is boosting average asking rents and lowering vacancy rates, according to
a new report from Yardi®
Matrix.

Average asking
rates increased 1.7% over the six-month period ending in June 2019, matching office-using
employment sectors’ year-over-year growth rate that month. The national vacancy
rate was 13.5% in June, 20 basis points below the previous month.

The report documents
26.5 million square feet of office space delivered year-to-date and 174.7
million square feet currently under construction. Office sales totaled $38.8
billion through June and “the decline of the 10-year Treasury yield … should
continue to act as a catalyst for transactions,” the report says.

Half of all space
under construction is in six top gateway markets—Manhattan, N.Y., San
Francisco, Washington, D.C., Boston, Los Angeles and Chicago—and
growing tech markets Seattle, the Bay Area and Austin, Texas.

More information
about U.S. office property demand, deliveries, lease rates, construction and
sales is available in the national
office report for July 2019.

Yardi Matrix offers the industry’s
most comprehensive market intelligence tool for investment professionals, equity
investors, lenders and property managers who underwrite and manage investments
in commercial real estate. Yardi Matrix covers multifamily, industrial, office
and self storage property types. Email [email protected], call 480-663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi^® develops and
supports industry-leading investment and property management software for all
types and sizes of real estate companies. Established in 1984, Yardi is based
in Santa Barbara, Calif., and serves clients worldwide. For more information on
how Yardi is Energized for Tomorrow, visit yardi.com.