National Office Statistics Update
Credits to Stephen Newbold, National Director of Office Research for Colliers. The national vacancy rate just went up to 16.4%, which is a record high. The suburban rate is 16.0% and CBD rate is 17.3%. There are 88 million square feet of new office buildings under construction, with 12 mil in New York City, 8.1 mil in the San Francisco Bay Area and 7.4 mil in Seattle/Puget Sound. Overall 37% of metro markets saw positive absorption in Q2 2023, with Washington D.C. leading at 1.18 mil positive, and San Francisco Bay Area led the negative absorption at 2.81 mil sf followed by New York City at 2.66 mil negative. Overall national Class A full-service rates average $41.68/rsf, with CBD at $52.93 and Suburban at $34.56/rsf. The highest asking rates were in Manhattan at $87.55/rsf followed by San Francisco at $79.06/rsf. Sorry this wasn’t a more exciting blog but hey, it was interesting to me so I thought I would share!
