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Another Day at the Office: Asking Rates Rise Again, Yardi Matrix Reports

Strong fundamentals push key U.S. office market metrics up in August

SANTA BARBARA, Calif.,
Sept. 26, 2019 – Ongoing strong
demand from office-using employment sectors produced another increase in U.S.
office asking rates in August 2019, according to a new report from Yardi® Matrix.

The 0.1%
year-over-year asking rate increase continues the year’s growth trend. National
vacancy rates dropped 10 basis points from July to 13.4%, and office-using
employment is rising faster than the overall labor market.

“Markets with
lower-than-average vacancy rates and solid office-using employment growth
continue to have the highest rate of year-over-year growth in listing rates,”
the report says, citing San Francisco, Tampa, Fla., and Nashville, Tenn., as
the biggest gainers.

New office
deliveries in the first eight months of 2019 totaled 40.1 million square feet,
with another 179.1 million square feet remaining under construction. Year-to-date
transaction volume totaled $55.2 billion and low borrowing rates “should
continue to drive sales, as the cost of debt remains cheap,” according to the
report.

More information
about U.S. office property lease rate, occupancy trends, transactions and more is
available in the national
office report for September 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. Email [email protected], call 480-663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops and
supports industry-leading investment and property management software for all
types and sizes of real estate companies. Established in 1984, Yardi is based
in Santa Barbara, Calif., and serves clients worldwide. For more information on
how Yardi is Energized for Tomorrow, visit yardi.com.