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.
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