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
| Sep 9, 2014
Using Facebook to transform workplace design
As part of our ongoing studies of how building design influences human behavior in today’s social media-driven world, HOK’s workplace strategists had an idea: Leverage the power of social media to collect data about how people feel about their workplaces and the type of spaces they need to succeed.
| Sep 7, 2014
Ranked: Top state government sector AEC firms [2014 Giants 300 Report]
PCL Construction, Stantec, and AECOM head BD+C's rankings of the nation's largest state government design and construction firms, as reported in the 2014 Giants 300 Report.
| Sep 7, 2014
Behind the scenes of integrated project delivery — successful tools and applications
The underlying variables and tools used to manage collaboration between teams is ultimately the driving for success with IPD, writes CBRE Healthcare's Megan Donham.
| Sep 5, 2014
First Look: Zaha Hadid's Grace on Coronation towers in Australia
Zaha Hadid's latest project in Australia is a complex of three, tapered residential high-rises that have expansive grounds to provide the surrounding community unobstructed views and access to the town's waterfront.
| Sep 3, 2014
Ranked: Top local government sector AEC firms [2014 Giants 300 Report]
STV, HOK, and Turner top BD+C's rankings of the nation's largest local government design and construction firms, as reported in the 2014 Giants 300 Report.
| Sep 3, 2014
New designation launched to streamline LEED review process
The LEED Proven Provider designation is designed to minimize the need for additional work during the project review process.
| Sep 2, 2014
Ranked: Top green building sector AEC firms [2014 Giants 300 Report]
AECOM, Gensler, and Turner top BD+C's rankings of the nation's largest green design and construction firms.
| Sep 1, 2014
Ranked: Top federal government sector AEC firms [2014 Giants 300 Report]
Clark Group, Fluor, and HOK top BD+C's rankings of the nation's largest federal government design and construction firms, as reported in the 2014 Giants 300 Report.
| Aug 29, 2014
China Syndrome: How long will U.S. firms keep milking the Middle Kingdom?
U.S. architecture and engineering firms like Goettsch Partners have been enjoying full employment in China. But will there come a point when Chinese officials—and Chinese designers—say, We can handle this? BD+C's Robert Cassidy digs into this issue.
| Aug 28, 2014
Stantec releases design for Edmonton's tallest tower
At 227 meters, Stantec Tower will be the tallest building in the city, dwarfing the two next-tallest: Epcor Tower and Manulife Tower.