The emergence of the delta variant is pushing back return-to-office dates, but rents remain stable and vacancies are cooling.
Austin’s office market has been outpacing other Texas office markets in the last year as companies relocate from other place. After peaking in March, vacancies are starting to taper off.
As global trade routes reopen, West Coast port markets are seeing significant increases in activity. Naturally, this translates to high occupancy and vacancy rates of below 2%, as well as lease spreads of nearly $2 per square foot.
Markets with an abundance of top tier office stock, where concessions are more negotiable than the asking prices, have partly supported the steady Y-o-Y growth of full-service equivalent listing rates throughout the pandemic.
Development continues at accelerated pace, working to keep up with growing demand across the country, with some markets tightening to vacancy rates of 3% and even 2%.
Rents have increased steadily throughout the pandemic-stressed economy. The upward trend is likely to continue, as transactions focus on high-quality, high-value assets.
U.S. industrial lease rates continued to climb in April while vacancy held steady at 6.1%. Sales activity accelerated, closing out April with $5.1 billion in industrial transactions nationwide.
Despite rising vacancy, average office lease rates across the top 50 markets in the U.S. continue to follow an ascending trend.
As U.S. industrial lease rates climbed 4.4% YoY, vacancy held steady in March 2021, and sales activity exceeded $8 billion in first quarter transactions.
Both lease rates and office vacancy saw modest Y-o-Y increases in March 2021, but investors did not shy away from spending record amounts in top office markets.