Transwestern released its 2017 year-end report on the national office market, which revealed that December’s 11.5% vacancy rate was the lowest reported in 10 years.
Significant net absorption in markets such as Dallas/Fort Worth; San Jose/Silicon Valley; Seattle; Northern Virginia; and Austin, Texas, contributed to this decline in vacancy, as did a deceleration in new construction starts during the fourth quarter.
Ryan Tharp, Director of Research for Transwestern’s Dallas office, noted that while Dallas led absorption in 2017 with nearly 5.3 million sf, the majority of major markets contributed to this consistent downward trend.
“Miami, for example, posted a 10-year low in overall vacancy during 2017 with an average 150,000 square feet of positive absorption each quarter,” said Tharp. “The strength of the office market is not confined to a few specific metros or regions.”
Healthy rent growth also was experienced around the country in the fourth quarter of 2017, with the top 10 markets in this category—representing Eastern, Central, and Western regions of the country—posting increases between 5% and 9%.
Boston, the outlier, led the nation in rent growth for the quarter, at 15.1%. Overall, the average asking office rental rate for U.S. office product ended the year at $25.51 per sf, reflecting 3.4% annual growth.
Confidence in the market’s performance through 2018 remains high, especially in light of recent tax cuts, which the business community is responding to favorably.
“Despite Northern Virginia having the second-highest office vacancy in the country at 16.8%, we believe consumer and business spending will strengthen in 2018, further bolstering both the local and national office market as companies grow to keep up with demand for good and services,” added Elizabeth Norton, Managing Director of Research based in Washington, D.C.
Download the national office market report at: http://twurls.com/4q17-us-office
Related Stories
| Aug 11, 2010
CTBUH changes height criteria; Burj Dubai height increases, others decrease
The Council on Tall Buildings and Urban Habitat (CTBUH)—the international body that arbitrates on tall building height and determines the title of “The World’s Tallest Building”—has announced a change to its height criteria, as a reflection of recent developments with several super-tall buildings.
| Aug 11, 2010
BIG's 'folded façade' design takes first-prize in competition for China energy company headquarters
Copenhagen-based architect BIG, in collaboration with ARUP and Transsolar, was awarded first-prize in an international competition to design Shenzhen International Energy Mansion, the regional headquarters for the Shenzhen Energy Company.
| Aug 11, 2010
Jacobs, Arup, AECOM top BD+C's ranking of the nation's 75 largest international design firms
A ranking of the Top 75 International Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
New air-conditioning design standard allows for increased air speed to cool building interiors
Building occupants, who may soon feel cooler from increased air movement, can thank a committee of building science specialists. The committee in charge of ANSI/ASHRAE Standard 55 - Thermal Environmental Conditions for Human Occupancy—after months of study and discussion--has voted recently to allow increased air speed as an option for cooling building interiors. In lay terms, increased air speed is the equivalent of turning up the fan.
| Aug 11, 2010
Architecture Billings Index flat in May, according to AIA
After a slight decline in April, the Architecture Billings Index was up a tenth of a point to 42.9 in May. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. Any score above 50 indicates an increase in billings.
| Aug 11, 2010
Free-span solar energy system installed at REM Eyewear headquarters
The first cable-suspended free-span solar energy system was completed today over the REM Eyewear headquarters parking lot in Sun Valley, Calif. The patented, cable-supported photovoltaic system created by P4P Energy is expected to generate 40,877 kilowatt-hours of renewable electricity per year, enough to power five to six single family homes and to prevent 1.5 million pounds of carbon from being released into the atmosphere.
| Aug 11, 2010
Construction employment declined in 333 of 352 metro areas in June
Construction employment declined in all but 19 communities nationwide this June as compared to June-2008, according to a new analysis of metropolitan-area employment data released today by the Associated General Contractors of America. The analysis shows that few places in America have been spared the widespread downturn in construction employment over the past year.
| Aug 11, 2010
Jacobs, Hensel Phelps among the nation's 50 largest design-build contractors
A ranking of the Top 50 Design-Build Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants