According to Transwestern’s newly released 2017 year-end report on the national office market, the U.S. office market’s nationwide December 2017 vacancy rate of 11.5 percent was the lowest reported in 10 years.
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 percent. Boston, the outlier, led the nation in rent growth for the quarter, at 15.1 percent.
Overall, the average asking office rental rate for U.S. office product ended the year at $25.51 per square foot, reflecting 3.4 percent annual growth.
Vacancy: New Orleans, LA had the lowest overall vacancy rate at 8.2%. The highest vacancy rate of 17.6% was recorded in Houston, TX.
Asking Rents: Cincinnati, OH had the lowest asking average Full Service Gross (FSG) rate of any metropolitan area at $16.92. On the opposite end, NYC/Manhattan had an average FSG rate of $73.89.
Rent Growth: Boston, MA experienced an annual rent growth rate of 15.1%, the highest in the nation. Meanwhile, rents in Houston, TX dropped an average of 3.5%.
Under Construction: NYC/Manhattan has the most square feet under construction at 16,133,168 sqft, while only 14,725 sqft. are under construction in Pittsburgh, PA.