Transwestern released its 2017 year-end report on the national office market, which revealed that December’s 11.5% vacancy rate was the lowest reported in 10 years.
Significant net absorption in markets such as Dallas/Fort Worth; San Jose/Silicon Valley; Seattle; Northern Virginia; and Austin, Texas, contributed to this decline in vacancy, as did a deceleration in new construction starts during the fourth quarter.
Ryan Tharp, Director of Research for Transwestern’s Dallas office, noted that while Dallas led absorption in 2017 with nearly 5.3 million sf, the majority of major markets contributed to this consistent downward trend.
“Miami, for example, posted a 10-year low in overall vacancy during 2017 with an average 150,000 square feet of positive absorption each quarter,” said Tharp. “The strength of the office market is not confined to a few specific metros or regions.”
Healthy rent growth also was experienced around the country in the fourth quarter of 2017, with the top 10 markets in this category—representing Eastern, Central, and Western regions of the country—posting increases between 5% and 9%.
Boston, the outlier, led the nation in rent growth for the quarter, at 15.1%. Overall, the average asking office rental rate for U.S. office product ended the year at $25.51 per sf, reflecting 3.4% annual growth.
Confidence in the market’s performance through 2018 remains high, especially in light of recent tax cuts, which the business community is responding to favorably.
“Despite Northern Virginia having the second-highest office vacancy in the country at 16.8%, we believe consumer and business spending will strengthen in 2018, further bolstering both the local and national office market as companies grow to keep up with demand for good and services,” added Elizabeth Norton, Managing Director of Research based in Washington, D.C.
Download the national office market report at: http://twurls.com/4q17-us-office
Related Stories
| Feb 14, 2013
Boxman Studios launches shipping container buildings division
Boxman Studios has launched a new division aimed at sustainable solutions for the Built Environment. The Boxman Studios Buildings Division will focus on the adaptive use of decommissioned shipping containers as architectural elements and even complete buildings.
| Feb 14, 2013
Guardian DiamondGuard installed in the Empire State Building
Guardian Industries DiamondGuard glass was recently installed on the 102nd story of the Empire State Building in New York City as part of an extensive renovation to update this venerable landmark.
| Feb 12, 2013
OMA's 'perimeter core' design wins competition for Essence Financial Building in Shenzhen
OMA partners David Gianotten and Rem Koolhaas rethink traditional office tower design with a plan that shifts the building's core to the edge for large, unobstructed plans.
| Feb 8, 2013
5 factors to consider when designing a shade system
Designing a shade system is more complex than picking out basic white venetian blinds. Here are five elements to consider when designing an interior shade system.
| Feb 6, 2013
RSMeans cost comparisons: office buildings and medical offices
RSMeans' February 2013 Cost Comparison Report breaks down the average construction costs per square foot for four types of office buildings across 25 metro markets.
| Feb 1, 2013
Delinquency rate for U.S. commercial real estate loans hits 11-month low
The delinquency rate for U.S. commercial real estate loans in CMBS fell 14 basis points in January to 9.57%. This is the lowest level in 11 months, according to Trepp, LLC's latest U.S. CMBS Delinquency Report.
| Jan 31, 2013
The Opus Group completes construction of corporate HQ for Church & Dwight Co.
The Opus Group announced today the completion of construction on a new 250,000-square-foot corporate headquarter campus for Church & Dwight Co., Inc., in Ewing Township, near Princeton, N.J.
| Jan 31, 2013
More cities requiring large buildings to use EPA’s energy management and reporting
In 2012, Philadelphia joined several other U.S. cities in passing a requirement that large buildings use Portfolio Manager, the Environmental Protection Agency’s energy management tool, to measure and report energy performance.
| Jan 29, 2013
Astellas' New Headquarters for the Americas Earns LEED Gold Certification
The new headquarters for Astellas in the Americas in Northbrook, Ill., has been awarded LEED Gold certification by the USGBC.