Brisk Job Growth Spurs U.S. Office Market Demand—Yardi Matrix Reports

Brisk Job Growth Spurs U.S. Office Market Demand—Yardi Matrix Reports

Development pipeline remains robust even as construction delays slow deliveries

SANTA BARBARA, Calif., March 7, 2019 – A new report from Yardi® Matrix shows that the U.S. office market is continuing its strong performance into 2019. Asking rents rose by 0.5% in the three months ending in January.

The report, drawn from the Yardi Matrix office market database, illustrates that job growth in office-using industries, which measured 2% year-over-year in January, is driving demand for space. Inventory growth is strongest in coastal markets such as New York City and San Francisco and in rapidly growing metros like Austin, Texas; Nashville, Tenn.; and Charlotte, N.C. Office space under construction in February totaled more than 169 million square feet, 2.9% of existing inventory.

While the development pipeline remains healthy and projects in the planning phase represent a 6.7% addition to inventory, “office deliveries have been slowed by construction delays as a result of labor shortages,” the report says. Thanks to continuing demand and ample capital, however, “many of the [commercial real estate] projects in planning phases will move forward even if they are not delivered for a few years.”

Read the full Yardi Matrix national office report for February 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 matrix@yardi.com, 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.

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