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
Museums | Jun 28, 2015
Manhattan's New Museum debuts first museum-led incubator space
Part studio, part shared workplace, part lab, and part professional development program, NEW INC connects design with technology, the arts with the market, students with seasoned practitioners, and the museum with the world.
High-rise Construction | Jun 23, 2015
The world's best new skyscrapers for 2015
One World Trade Center and Abu Dhabi's Burj Mohammed Bin Rashid Tower are among the four towers named Best Tall Buildings by the Council on Tall Buildings and Urban Habitat.
Office Buildings | Jun 18, 2015
How tech firms use real estate for competitive advantage
The tech sector is the top industry leasing office space in the U.S., accounting for 20% of major leasing activity in 2014. Dina Belon of Paladino and Company shares how these firms are using their real estate to go up against their competitors.
Office Buildings | Jun 17, 2015
Daniel Libeskind unveils 'talking towers' design for Rome development
The scheme will drastically change the Eternal City’s skyline: three angular towers that look like they’re “in conversation with one another.”
Office Buildings | Jun 12, 2015
Houston's energy sector keeps office construction humming
Colliers International projects continued expansion this year in its quarterly report on national office market.
Office Buildings | Jun 11, 2015
Pop-up tree-office opens in London borough of Hackney
London's Hackney borough welcomed a new kind of workspace to Hoxton Square—the TreexOffice.
Modular Building | Jun 10, 2015
London debuts business complex made from 50 shipping containers
London's newest business complex, Pop Brixton, will support local entrepreneurs, create jobs, and is made entirely of shipping containers.
Office Buildings | Jun 9, 2015
Bjarke Ingels unveils stepped design for final WTC tower
The towering "staircase" will rise from St. Paul’s chapel to the skyline, leaning against One World Trade Center.
Office Buildings | Jun 9, 2015
Hines planning $300 million office tower for Denver skyline
Designed by Pickard Chilton, the 640,000-sf tower is geared for large-scale tenants, with features like floor-to-ceiling glass, a 5,000-sf fitness center, a tenant lounge, and a series of outdoor terraces.
Office Buildings | Jun 3, 2015
Tech's influence on the workplace: 4 lessons from the field
Beyond space and programmatic considerations, four tenets highlight today’s tech workplaces: strength of story, design empathy, technology presence, and hackerspace.