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CBRE Report: U.S. Office Vacancy Ticks Up
Vacant office space in the U.S. increased slightly by 10 basis points (bps) during Q4 2017 to 13%, according to the latest analysis from CBRE. For the year, vacancy inched up 10 bps, marking the first year-over-year increase in vacancy since 2010.
The vacancy rate in suburban markets increased 10 bps, to 14.2% and downtown vacancy ticked up 10 bps to 10.7%. Vacancy continued to fall in a majority of U.S. office markets, and the national office vacancy rate remains near its post-recession low.
CBRE Americas’ head of research, Spencer Levy, says, “The fourth quarter’s slight office vacancy rise can be attributed to an increase of supply and a slight loosening in the tightness of the market as we have closed in on the previous cyclical low. Despite the slight rise in vacancy, we see the new supply as healthy overall, as many markets were becoming space constrained, in particular for large block space.”
Largest metro-area declines:
– Riverside (-80 bps)
– Salt Lake City (-70 bps)
– Richmond (-60 bps)
Lowest vacancy rates:
– Seattle (7.6%)
– San Francisco (7.8%)
– Austin (8.2%)
– Raleigh (8.3%)
– New York (9.4%)
– Boston (9.8%)
*Seattle skyline pictured
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