U.S. Office Market Starts Year on a Flat Note, Yardi Matrix Reports

Average January listing rate repeated 2019 figure. Urban locales host majority of projects in development

SANTA BARBARA, Calif., Feb. 28, 2020 – The average U.S. office listing rate was $37.85 per square foot in January 2020, unchanged from the same period last year even as office-using employment continued to outpace overall national employment growth.

A new report from Yardi® Matrix shows that year-over-year full-service equivalent listings grew at rates exceeding or approaching 10% in Manhattan, N.Y., Austin, Texas, and Tampa, Fla. They fell in other markets, however, including Boston, Chicago and Seattle. Nationwide deliveries of new supply totaled 9.1 million square feet. Another 145.9 million square feet of space remains under construction, with 70% concentrated in central business districts or urban submarkets.

Reports of foreign investors selling U.S. commercial real estate assets could have a large impact on the office sector this year.

Learn more about office supply, demand and transactions, plus additional details on Miami, Dallas and Charlotte, N.C., in the Yardi Matrix national office report for February 2020.

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 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.