Tech markets continued to see some of the highest vacancies in the nation, driven mainly by the shift to remote and hybrid work and the wave of tech layoffs started in 2022, according to our latest U.S. office market report. Six of the top 25 office markets recorded vacancy rates over 24% in October, well above the national average of 19.4%.
San Francisco leads the nation with a 27.7% rate, up 360 basis points year-over-year. Seattle’s vacancy rate climbed 390 basis points to 25.8%, while the Bay Area’s increased by 630 basis points to 26.4%
Key highlights include:
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Nationwide, 60.8 million square feet of office space is under construction, representing 0.9% of total stock, while only 8.5 million square feet broke ground this year
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Office sales totaled $29.2 billion through October, with an average price of $177 per square foot, up from $171 per square foot earlier this year
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San Francisco became the most expensive office market in the U.S., surpassing Manhattan, with asking rents averaging $69.14 per square foot
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Detroit is the most affordable office market in the nation, with asking rents averaging $21.46 per square foot
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Boston remained the nation’s leader in office development with 10.7 million square feet under construction, driven primarily by life science projects
For more in-depth market insights on the top 25 office markets, read our report here: https://www.commercialedge.com/blog/national-office-report/
You can also check our previous reports here: https://www.commercialedge.com/blog/tag/office-reports/
