Prime Asset Sales Rise on Strong U.S. Office Property Demand, Yardi Matrix Reports

Rate of per-square-foot price increases for CBD buildings matches pre-recession
levels

SANTA BARBARA, Calif.,
Dec. 3, 2019 – Prices for prime
U.S. office assets have risen sharply this year. Office property transactions,
spurred since summer by lower interest rates, totaled $74 billion through
October, according to a new report from Yardi® Matrix.

Per-square-foot
prices for central business district buildings are 24.6% higher than they were last
year while sales of buildings with A+ and A ratings went up 12.1%. “This rate
of increase in CBD prices hasn’t been seen since the years before the Great
Recession,” the report says. “The rapid increase in pricing is a trend we will
closely monitor.”

Demand for office
space remains strong, with employment in office-using sectors increasing by
1.7% over the past 12 months.  Average national
listing rates were up 2% in October from the same period last year while the vacancy
rate increased 40 basis points from the previous month, reaching 13.7%.

Get
up to date on U.S. office property fundamentals, including a detailed look at Miami
and the San Francisco Bay Area, with the Yardi Matrix national
office report for November 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, student housing, 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.