U.S. Office Market Closes 2022 with Still-Rising Vacancies & Declining Sales
Higher interest rates will likely hamper new supply as well as sales activity in 2023, while tenants’ flight-to-quality expected to persist.
Despite Record New Supply, National Industrial Vacancy Dips Below 4%
More than 742 million square feet of industrial space was under construction at the end of November as demand continues to outstrip supply.
Tech Sector Downsize Further Challenges Office Recovery
The average listing rate for office space stood at $38.06 in November, while vacancies rested at 16.2% across the top 50 U.S. office markets.
Driven by Shipping and Logistics, National Development Pipeline Nears 714 Million Square Feet
National industrial in-place rents averaged $6.95 per square foot, up 5.8% year-over-year as demand remains strong
Office Vacancy Rates Continue to Climb Across the Country in 2022
The average listing rate for office space stood at $37.94 in October, while vacancies rested at 16.3% across the top 50 U.S. office markets.
Sustained Demand and Insufficient New Supply Drive Lease Premiums to New Highs in Port Markets
Industrial tenants continue to pay increasing lease rates, with new contracts $1.38/sq .ft higher than in-place rents.
Office Starts Slump in Gateway Markets but Advance in the Sunbelt
The average listing rate for office space stood at $35.67 in September, while vacancies rested at 16.6% across the top 50 U.S. office markets.
$58B National Industrial Sales Total Nears National Office Sales Volume
After 7 consecutive quarters of growth, in Q3 2022 the national average sale price came in $6 below Q2, resting at $131/sq. ft.
Life Sciences Continue Driving Demand for Office
Trading at an average $645/sq. ft, life science properties are selling for 150% higher than the $258/sq. ft average of general office buildings.
Supply Chain Disruptions Contribute to Historic Highs in Industrial Lease Spreads
National lease spread hits historic high at $1.45 per square foot, with some markets, like Los Angeles, are seeing gaps as wide as $4.89.
Stay current with the latest market reports and CRE news