SANTA BARBARA, Calif.— A new national office property report from Yardi® Matrix illustrates that brisk absorption of new supply is driving increases in asking rents and keeping the vacancy rate steady.
Office rents’ strength across the U.S. reflects ‘the continued health of the economy and the growth of the technology, health care and coworking segments,’ according to the report.
Nineteen of the 25 major markets covered in the report saw gains in asking rents over the past three months, led by Austin, Texas (9.1%), and Brooklyn, N.Y. (8.6%). Chicago and Seattle were the only metros with declines of more than 1%.
Asking rents stood at $36.40 per square foot nationally in April 2019, a 1.1% increase over the previous three-month period. The vacancy rate was unchanged at 13.7%. Office property transactions valued at $19.8 billion closed in the first four months of the year.
View the full Yardi Matrix national office report for May 2019.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, industrial, office and self storage property types.