6. Get full access to all features within our Business Solutions. The overall office vacancy rate on the New York City market was 12.01% in 2021. While distressed activity has been muted to this point, weak demand, falling prices and a potential recession could lead to an increase in distressed sales in 2023, as well as one of the smallest sales volumes since the Great Recession, the CommercialEdge U.S. office market report reveals. While it appears trending in the right direction, this is still a significant increase from the 8.6% vacancy rate recorded in 2019, and the trend is expected to continue into 2022. Where I live (Atlanta), its almost always still faster to drive even if within reasonable distance of a transit station. Despite a nearly 19% vacancy rate, San Francisco continued to lead the West in asking rents at $67.43 per square foot. Some cities have even seen increased occupancy rates since before the pandemic. Thanks to WFH, I only go in occasionally and am purposefully avoiding as much fuel costs as possible. Additionally, the West Coasts top markets also led the region in terms of office development: San Francisco and Seattle both had 6.5 million square feet under construction in January, accounting for 4.2% and 4.7% of their existing stocks, respectively. 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Please do not hesitate to contact me. Q4 2022 U.S. OFFICE MARKETBEAT Access Q4 2022 commercial real estate results for the office sector. I agree with the general sentiment on this site that the economy is rather healthy in the USA. See our Privacy Policy, My List of 23 Major US Office Markets, by Vacancy Rates Ranging from Abysmal to Just Terrible, Copyright 2011 - 2023 Wolf Street Corp. All Rights Reserved. To go back into the office would cost me about $20k/year right now. The ruble has done nothing but collapse. Who cares if it is occupied. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Oklahoma City was 1.90% in the Eastern Oklahoma County submarket, while the highest office vacancy in the market was 19.99%, recorded in CBD. Although offices in urban locations experienced the sharpest decline in asking rents, developers were most active in these areas. It answers some of your questions. Supply Chain Changes Are Driving Warehouse Demand Near the Southern Border, From Provo, Utah to Charlotte, North Carolina, These Are the Metros Office Users Should Consider, New Space, Quick Occupancy, No Construction, Renovations Resulted in Offices, Showrooms, a Manufacturing Space, a Coffeeshop and a Coworking Space, Health Clubs by Far Led the Pack in Terms of 2022 Foot Traffic for Retailers. Well, if you were British, everything is appalling. "Austin has seen the largest increase in vacancy rate over the past 12 months, jumping from 7.8% . Some tech and social media companies have announced hiring freezes, including Facebook and Twitter. The Texas city went through spate of construction several years ago. You need a Statista Account for unlimited access. But San Francisco isnt the worst office market. And this is before the recession formally begins. So, I dont see most large companies shifting from older to newer development. Texas markets traditionally have higher office vacancy rates because of the ease of construction. These data are used extensively by public and private sector organizations to evaluate the need for new housing programs and initiatives. Im pretty hooked into the start-up community. Houston, as I pointed out, has been bad since 2015 due to the oil bust, with rates 20%-25%. It has since signed more leases in Silicon Valley. Remember passwords are case sensitive. Like the lab rats I deliver to, I, unfortunately, cannot work from home. With all the shortages, Renault may be using the parts that went to Russia and send them to their other factories and cutting their losses in Russia. How is the vacancy rate calculated and how can it be manipulated? Boston is a little bit unique in that there is strong demand for wet space (bio labs) since we have major pharmaceutical companies head quartered here. Availability is based on the total office space that is advertised (listed) for rent and on the market to be rented, and is therefore available to rent. In terms of vacancies, Brooklyn still had the largest amount of vacant space in the Northeast in January, with rates at 19.71%. Houstons significant space availability means that landlords must continue to offer free rent and concessions to attract tenants, according to CoStars Houston market report. Many thanks for your efforts. JD, I was wondering about St. Louis, too, but Id imagine its smaller than even San Diego. Despite a marginal dip of 0.7% in effective rents in 2020, average effective . Others have made cutting costs suddenly a priority, promising very constrained hiring, such as Uber. A lot of youths seem permanently acclimated to life in front of a screen. Perhaps the Chinese concept of Ghost Cities can be applied to Ghost Office Buildings. Statista. Inflation & Devaluation Expense data is available to CommercialEdge subscribers. Owner-occupied buildings are not included in vacancy calculations. So in effect you are saying pass through payments are sufficient to do QT of $35 billion a month from Sept. And if insufficient then sales will happen. My last bout with COVID knocked me down for two weeks and Im still recovering from it three weeks later. Nurses, auto mechanics, retail workers. This statistic is not included in your account. The last leg to fall will be commodity prices. On thenational level, this rate was exceeded only by Atlantas 20.3% and Houstons 25.99%. This has been in the official policy statement two weeks ago, and there is nothing new here, because thats how QT works: https://wolfstreet.com/2022/05/04/powell-confident-in-softish-landing-for-the-economy-but-we-may-keep-inflation-markets-can-figure-out-their-own-landing/. Moreover, January assets traded at an average $202 per square foot, totaling $1.9 billion, a third of which was concentrated in just two markets: Houston and Miami. Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022, Profit from additional features with an Employee Account. Based on data gathered from CoStar, here are the Top 10 cities with the most office vacancy as of July 15. The idea of anybody living in them is NOT part of the event. Imagine selling Apple stock for a gain and avoiding taxes if you re-invest usually in 90 days in Amazon. Moreover, Miami also had the fourth-highest listing rate among the countrys top 25 markets, closing January at $47.24 per square foot. 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