Global real estate giant Cushman & Wakefield released its 3rd Quarter Office Market Beat. Among the report’s findings:
- National Vacancy Rate: Office vacancy rate is 13.2%, down from 13.3% in Q2. This is the lowest national vacancy rate since 2008.
- National Asking Rate: $29.45
- New Office Space: A total of 11.3 MSF of new office space was delivered to markets across the U.S. during the third quarter of 2016, slightly less than the pace of absorption.
- National Rent Change: Weighted average asking rent increased by 1.4% from Q2 2016 and rose 5.5% from Q3 2015.
Most Expensive Markets per Sqft.:
1.) Midtown Manhattan, NY: $79.91
2.) Midtown South, NY: $70.29
3.) San Francisco, CA: $69.21
4.) Downtown Manhattan, NY: $59.13
5.) San Mateo County, CA: $56.55
Lowest Vacancy Rates
1.) Nashville, TN: 4.7%
2.) Midtown South Manhattan, NY: 6.7%
3.) Charleston, SC: 7.0%
4.) San Mateo, CA: 7.5%
5.) San Francisco, CA: 7.7%
Highest Vacancy Rates
1.) Westchester County, NY: 22.8%
2.) Fairfield County, CT: 21.5%
3.) Suburban Virginia: 21.1%
4.) Suburban Marland: 21.2%
C&W Conclusion: “National trends are looking more likely to show that rental growth rates will peak in 2016 and then begin decelerating in 2017.”