As office demand continues to shift, central business districts face ongoing headwinds, according to our latest office report. CBD properties remain under pressure as leases roll and construction slows. CBD vacancy now stands at 19.2%, up 730 basis points since early 2020. To compensate for decreasing demand, CBD listing rates have dropped nearly 30% below pre-pandemic levels.
On a national level, the average vacancy rate climbed to 19.7% in April, up 140 basis points year-over-year, while listing rates averaged $33.34 per square foot, a 5.4% increase from the year prior.
Other key highlights:
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The under-construction office pipeline fell to 44.6M sq. ft.
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Development has slowed considerably, with only 2.8 million sq. ft. of new construction started through April
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Sales volume reached $14.2B year-to-date, with a national average price of $191/sq. ft.
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The Bay Area’s average sale price dropped 50% from its 2021 peak, now standing at $254/sq. ft.
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Austin posted the second-highest vacancy rate nationwide at 28.9%, up 650 basis-points Y-o-Y
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Manhattan recorded the highest sale price among major metros at $439/sq. t.
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/
