Read the latest Yardi Matrix Office Market Outlook.

Report Highlights

• The national office vacancy rate clocked in at 18.6 percent as of October—90 basis points lower over the past 12 months.
• The full-service equivalent listing rate stood at $32.81 per square foot, two cents higher than the previous month.
• The national under construction pipeline consisted of 33.4 million square feet as of October, representing 0.5 percent of existing stock.
• As of October, the office transaction volume reached $42.6 billion, with properties selling at an average sale price of $191 per square foot.

Elevated vacancies continue

Year-to-date through October, the national office vacancy rate stood at 18.6 percent—down 90 basis points year-over-year and unchanged from the previous month. As most U.S. companies still favor remote work, even with the rate declining every year since its peak in 2021, a full return to the office appears unlikely. Work patterns vary across the top 25 U.S. markets. For context, Austin, Texas, had 23.2 percent of its employees working from home last year, while Manhattan had only 11.8 percent. Even if both markets recorded a similar share of office-using jobs, Austin supports remote work options more easily due to its tech-oriented work landscape.

Office markets with elevated vacancies include Seattle (27.4 percent), Austin (26.9 percent) and San Francisco (26.1 percent). In contrast, the lowest vacancies across the top 25 U.S. markets were recorded in Manhattan (13 percent) and Miami (13.4 percent).

The national average full-service equivalent listing rate stood at $32.81 per square foot in October—two cents higher than the previous month and up 0.1 percent year-over-year. Manhattan kept the top spot in average rents, at $67.97 per square foot, with San Francisco ($65.30 per square foot) and Miami ($56.34 per square foot) following. In terms of rent growth, the metro with the highest increase was Los Angeles, posting a 10.4 percent growth year-over-year.

Construction pulls back, investment patterns change

There were 33.4 million square feet under construction in the nation as of October—accounting for 0.5 percent of existing stock and 1.7 percent when adding projects in the planning stages to the figure. As of October, Boston was still the national leader for development activity, with approximately 4.7 million square feet underway, while Manhattan followed, with 3 million square feet.

The office transaction total in the country reached $42.6 billion as of October, with office assets selling at a $191 per square foot average. Manhattan led in both sales volume and prices, with $6.4 billion in deals and a $523 per square foot average sale price. The runner-up remained the Bay Area, with $4.4 billion in sales and a $386 per square foot average sale price.

Read the full Yardi Matrix Office Market Report: November 2025.

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Read the latest Yardi Matrix Office Market Outlook.

Report Highlights

• The national office vacancy rate clocked in at 18.5 percent as of November—90 basis points lower over the 12 months.
• The sector’s full-service equivalent listing rate was $32.77 per square foot in November—four cents lower than the previous month.
• The national under construction pipeline included 32.2 million square feet as of November, accounting for 0.5 percent of existing stock.
• Office transaction volume hit $48.1 billion as of November, with office assets trading at an average sale price of $190 per square foot.

Modest improvement in vacancy

As of November, the national office vacancy rate fell at 18.5 percent—90 basis points lower year-over-year. Among the top 25 U.S. office markets there were 16 metros where the rate improved during the first 11 months of 2025. However, elevated levels persist across several markets, such as Austin, that recorded the highest November rate nationally at 26.8 percent.

Seattle followed closely, with 26.6 percent, while the lowest vacancy rate was recorded in Miami, at 11.9 percent. Another bright spot was Manhattan, where the vacancy rate reached 13.4 percent in November—the second-lowest in the country-representing a 310-basis-point year-over-year decline. Meanwhile, Twin Cities stood out for vacancy deterioration, reaching 17.8 percent in November, marking a 190-basis-point increase over the past 12 months. Ameriprise Financial’s recent exit from its 1 million-square-foot headquarters office in downtown Minneapolis contributed to this rise.

The national full-service equivalent listing rate was $32.77 per square foot in November—down four cents month-over-month and 0.2 percent year-over-year. The priciest market for rents remained Manhattan, with a $68.36 per square foot average, while the lowest figure was recorded in Detroit, at $21.59 per square foot.

Pricing reaches bottom

There were 32.2 million square feet of office space underway in November—accounting for 0.5 percent of existing stock and 1.7 percent when adding projects in planning stages to that figure. Overall, there was a 44 percent drop in square feet under construction when compared to the previous year.

Boston stood out as national leader in office construction again, with developers adding 4.1 million square feet underway. However, the figure is still less than half of Boston’s pipeline from a year ago, highlighting a slowdown in demand for new lab space, where major federal funding cuts to NIH research grants could pressure life science construction.  Markets that followed include Manhattan, with nearly 3 million square feet and emerging as one of the only three major markets that expanded its pipeline in 2025, with a 10 percent year-over-increase. Dallas, with 2.6 million square feet, had the third-largest pipeline in the U.S.

The national office sales volume reached $48.1 billion as of November. Manhattan led all markets in sales with $7.3 billion, while the Bay Area followed with $4.4 billion.

Properties sold at $190 per square foot I November—up 7.1 percent year-over-year but 33 percent below the 2021 peak in the sector. For the first time since 2022, office pricing showed the first sign of stabilization, with the bottom finally appearing. However, discounted sales remained widespread, accounting for 44.3 percent of all office sales during the first 11 months of the year. As more than half of office debt will mature in upcoming years, discounted transactions will gradually increase.

Read the full Yardi Matrix Office Market Report: December 2025.

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Read the latest Yardi Matrix Office Market Outlook.

Report Highlights

• The national office vacancy rate clocked in at 18.6 percent as of September—80 basis points lower over the past 12 months.
• The full-service equivalent listing rate stood at $32.79 per square foot, 16 cents higher from the previous month.
• The office under-construction pipeline included 38.5 million square feet, representing 0.6 percent of existing stock.
• Office sales volume reached nearly $38 billion as of September, with assets selling at an average of $195 per square foot.

Coworking expands, vacancies to stay elevated

As of September, the national office vacancy rate stood at 18.6 percent—down 80 basis points over the past 12 months. As a result of lasting changes in the office landscape after the start of COVID, the flex office sector expanded notably, reaching 2.1 percent of the total office inventory.

Chicago is one of the markets that registered the largest increase on a year-over-year basis—up 60 basis points and with a coworking footprint representing 2.6 percent of its existing office stock. Meanwhile, as the coworking footprint grew faster than its location count, the average flex office space also increased by 2.1 percent to 18,080 square feet.

As hybrid work policies offer a cost-effective alternative to long-term leases, key office markets will likely continue to record increased vacancies. Austin and Seattle remain the metros with the highest rates in the nation, both with a 27 percent vacancy rate.

The national full-service equivalent listing rate reached $32.79 per square foot, up 16 cents from the previous month and 0.3 percent lower year-over-year. Some of the markets with the strongest rent growth include Atlanta and Portland, while Manhattan kept the top spot for pricy rents, with a $66.27 per square foot average.

Sales pick up pace, development slows

There were 38.5 million square feet of office space under development as of September—representing 0.6 percent of existing stock. With projects in prospective and planning stages, the figure reached 1.8 percent. Boston led the nation in office development, with a pipeline comprised of nearly 4.5 million square feet. Manhattan followed, with nearly 3 million square feet underway, while Dallas had the third-largest pipeline, of 2.6 million square feet.

As of September, the office investment volume reached nearly $38 billion, with assets changing hands for $195 per square foot. Specifically, the year recorded just under 2,000 office transactions, representing the largest sales total year-to-date through September 2022.

Read the full Yardi Matrix Office Market Report: October 2025.

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Read the latest Yardi Matrix Office Market Outlook.

Report Highlights:

• The national office vacancy rate stood at 18.7 percent as of August—down 80 basis points over the past 12 months.

• The national full-service equivalent listing rate clocked in at $32.63 per square foot as of August, marking a 0.4 percent year-over-year decrease.

• The sector’s under-construction pipeline comprised 40.2 million square feet —unchanged from the previous month. 

• Office transaction volume reached $33 billion as of August, with assets selling at an average of $190 per square foot.

Hybrid work impacts vacancies

As of August, the national office vacancy rate stood at 18.7 percent—down 80 basis points over the past 12 months. Five years after the start of COVID it is more clear that office utilization is unlikely to return to pre-pandemic levels, as hybrid work policies are here to stay. As a result, the office landscape now faces a series of lasting changes, such as elevated vacancies across multiple key metros. 

One example is Seattle, that had a 27.2 percent vacancy rate as of August. With a once-booming pipeline driven by the office-using sectors’ rapid expansion, the city’s employment in the tech and information sectors continues to fall since 2022. Coupled with remote work policies, Seattle’s traditional office sector will keep changing. For context, other markets with high vacancies include San Diego (22.6 percent), Dallas (22.4 percent) and Austin (26.5 percent), while at the other spectrum is Miami, with 14.3 percent. 

Meanwhile, the national average full-service equivalent listing rate stood at $32.63 per square foot—nine cents lower than the previous month and down 0.4 percent on a year-over-year basis. Manhattan’s rents kept the leading spot, at $67.96 per square foot, while San Francisco followed, with $64.15 per square foot.

Construction activity on standby, investment keeps steady

Nationwide, there were 40.2 million square feet under development—accounting for 0.6 percent of stock. When adding projects in the planning stages, the figure reached 1.9 percent. As of August, Boston continued to be the top office market for development, with 5.6 million square feet in its pipeline, while Manhattan followed, with 3.4 million square feet. 

The office investment volume reached $33 billion this year through August, with office properties selling at $190 per square foot—a slight increase from 2024 but significantly lower when compared to pre-COVID prices, when properties sold at $277 per square foot, back in 2019. As of August, Manhattan regained its leading position, with $5 billion in sales, while the Bay Area came in second place, with $3.4 billion. 

Read the full Yardi Matrix Office Market Report: September 2025. 

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Report Highlights

• The national office vacancy rate stood at 19.4 percent—unchanged from the previous month.
• The national average full-service equivalent listing rate clocked in at $32.72 per square foot, 3.3 percent higher year-over-year.
• As of July, the under-development office pipeline comprised 40.2 million square feet, representing 0.6 percent of existing stock.
• Office transactions totaled $27 billion year-to-date through July, with properties changing hands at an average of $182 per square foot.

Vacancies remain elevated despite market movement

The national office vacancy rate stood at 19.4 percent at the end of July—up 130 basis points in 12 months and unchanged since June. High vacancies remain sticky across multiple markets despite more return-to-office policies and mandates.

One example is Austin, which recorded the highest vacancy rate across major markets, at 27.2 percent in July. The rate was up 430 basis points year-over-year despite the metro’s strong office utilization rates and office-using employment stats. Other markets with particularly high vacancies included Seattle (27.0 percent), San Francisco (26.3 percent) and Detroit (24.6 percent).

The national average full-service equivalent listing rate stood at $32.72 per square foot—15 cents lower since the previous month but 3.3 percent higher year-over-year. Manhattan kept its top spot, at $67.97 per square foot, followed by San Francisco ($59.12 per square foot) and Miami ($57.30 per square foot).

Pipeline slows, sales pick up pace in 2025

The national under-construction pipeline comprised 40.2 million square feet as of July, accounting for only 0.6 percent of total stock. Still, when adding projects in the planning stages, the national figure reaches 2.1 percent.

Boston continued to have the largest office pipeline, with 5.6 million square feet underway, or 2.2 percent of existing stock. Other markets with large pipelines include Austin, Dallas and Manhattan, at 2.6 million square feet each.

The office sales volume totaled nearly $27 billion this year through July, with office assets trading at an average of $182 per square foot. The first half of 2025 recorded higher investment activity compared to last year. The first six months of this year clocked in at $25 billion in office deals, some $8.7 billion more than 2024’s first half.

Read the full Yardi Matrix Office Market Report: August 2025.

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Report Highlights

• The national office vacancy rate stood at 19.4 percent at the end of June—unchanged from the previous month. 
• The national average full-service equivalent listing rate was $32.87 per square foot, 3.8 percent higher on a year-over-year basis. 
• The office construction pipeline included 40.9 million square feet as of June, while construction starts comprised just 6.5 million square feet. 
• Office sales totaled $23 billion during the first six months of the year, while the average sale price stood at $189 per square foot. 

High vacancies across several key markets 

The national office vacancy rate clocked in at 19.4 percent in June—up 130-basis-point over the past 12 months and unchanged from the previous months. There are multiple markets that registered vacancies higher than the national value. Together with a rise in maturities and weak office-related job creation, the sector is likely to continue to struggle. 

The metros with high office vacancies in June included Austin (28 percent), San Francisco (27.7 percent), Seattle (26.7 percent) and the Bay Area (25 percent).  

Meanwhile, the national listing rates stood at $32.87 per square foot, 28 cents lower than the previous month but 3.8 percent higher year-over-year. The metro with the highest average listing rate remained Manhattan, at $67.97 per square foot, followed by San Francisco ($63.01 per square foot) and Miami ($56.97 per square foot).  

Construction starts fall 

The national office under-construction pipeline totaled 40.9 million square feet, representing just 0.6 percent of total stock, according to Yardi Matrix. There were just 6.5 million square feet in construction starts at the end of June, a notable contrast from the 12 million square feet in projects that broke ground last year. 

The metro with the largest office pipeline remained Boston, with 5.8 million square feet underway, accounting for 2.3 percent of its existing stock. Markets that followed include Dallas, with nearly 3.3 million square feet underway, and Austin, with 2.7 million under development. 

Office investment during the first half of this year generated $23 billion, with properties changing ownership at an average sale price of $189 per square foot. The usual leader in investment volume, Manhattan, dropped to third place across the top 25 U.S. markets, with $2.8 billion in sales. The Bay Area led the nation in June, with $3.2 billion, while Washington, D.C., followed with $3.1 billion. 

Read the full Yardi Matrix Office Market Report: July 2025. 

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Read the latest Yardi Matrix Office Market Outlook.

Report Highlights

• The national office vacancy rate clocked in at 19.4 percent at the end of May, a 30-basis point decrease from the previous month.
• National full-service equivalent listing rates averaged $33.15 per square foot, a 19-cent decrease from the month prior but up 4.8 percent year-over-year.
• The office construction pipeline continued to shrink, featuring 41.5 million square feet under development as of May.
• Transaction activity totaled $19.6 billion year-to-date in May.
• On average, office assets traded at $194 per square foot.

Seven metros top 23 percent vacancy rate

The national office vacancy rate reached 19.4 percent at May’s close—30 basis points lower than in April, but 160 basis points higher than during the same time last year. Vacancy rates are likely to remain elevated due to stagnant office utilization and sluggish growth in office-related jobs.

Metros with the largest shares of vacant office space included San Francisco (28.4 percent), Austin (26.7 percent), Seattle (25.8 percent), the Bay Area (25.0 percent), Detroit (24.0 percent), Denver (23.6 percent) and Dallas (23.5 percent).

Nationwide, full-service equivalent listing rates averaged $33.15 per square foot in May. This reflects a 19-cent decline from the month before, but a 4.8 percent increase compared to the same period last year. Yardi Matrix data shows Manhattan recorded the highest average at $68.08 per square foot, with San Francisco close behind at $63.01, followed by Miami at $57.71 and the Bay Area at $52.92.

2025 office starts lag 2024 pace

In May, the national office construction pipeline totaled 41.5 million square feet—just 0.6 percent of total inventory, according to Yardi Matrix. Development activity continued to slow in 2025, with only 4.2 million square feet breaking ground in the first five months of the year, a sharp decline from the 11.3 million square feet delivered during the same period in 2024.

Boston has had the nation’s largest office supply pipeline by square footage in recent years, primarily driven by the life science sector. The metro topped the list with close to 5.9 million square feet under construction, amounting to 2.3 percent of its office stock. Dallas had 3.2 million square feet of office space underway, equivalent to 1.1 percent of its total stock. Austin rounded up the top three with 2.7 million underway, or 2.8 percent of its stock.

During the first five month of the year, total office sales reached $19.6 billion, with properties trading at an average of $194 per square foot. Manhattan led investment volume at $2.8 billion, followed by Washington, D.C., at $2.5 billion and the Bay Area with $2.1 billion.

Read the full Yardi Matrix Office Market Report: June 2025.

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Read the latest Yardi Matrix Office Market Outlook.

Report Highlights

• The national office vacancy rate stood at 19.7 percent at the end of April, a 20-basis point decrease from the month prior.
• National full-service equivalent listing rates averaged $33.34 per square foot, decreasing by eight cents from the previous month but up 5.4 percent year-over-year.
• The office construction pipeline continued to shrink, featuring 44.6 million square feet under development as of April.
• Office investment totaled $14.2 billion year-to-date in April, with office properties trading at an average of $191 per square foot.

Office vacancy dips, rates rise

As of the end of April, the national office vacancy rate reached 19.7 percent—marking a 20 basis-point drop from March but a 140 basis-point increase compared to the same time last year. The cities with the highest vacancy levels included San Francisco (29.0 percent), Austin (28.9 percent), Seattle (27 percent), the Bay Area (25.6 percent), Denver (24.7 percent), Detroit (24.4 percent) and Dallas (23.9 percent).

On a national scale, full-service equivalent listing rates averaged $33.34 per square foot in April. This represents a modest eight-cent decrease from the previous month but a 5.4 percent gain year-over-year. According to Yardi Matrix data, Manhattan posted the highest average at $68.34 per square foot, followed by San Francisco at $64.19 and Miami at $56.53.

Office development slows nationwide

As of April, the national office construction pipeline featured 44.6 million square feet, representing 0.7 percent of total inventory, according to Yardi Matrix. New project starts remained limited, with just 2.8 million square feet breaking ground between January and April. With the sector still navigating the early stages of a long-term shift, development activity is expected to remain muted for the time being.

Boston topped the list with 5.5 million square feet under construction, amounting to 2.1 percent of its office stock. Austin and San Francisco each had 3.2 million square feet underway—equivalent to 3.4 percent and 2.0 percent of their respective inventories. Dallas followed with 3.1 million square feet, or 1.1 percent, while San Diego rounded out the top five with 2.1 million square feet, also 2.1 percent of local office inventory.

From January to April, total office sales reached $14.2 billion, with properties trading at an average of $191 per square foot. Manhattan led investment volume at more than $2.5 billion, followed by Washington, D.C., at $1.3 billion and the Bay Area with $1 billion.

Read the full Yardi Matrix Office Market Report: May 2025.

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Report Highlights

• The national office vacancy rate stood at 19.9 percent at the end of March, nearly flat from the previous month.
• National full-service equivalent listing rates averaged $33.42 per square foot, rising by one cent from the previous month and 4.9 percent year-over-year.
• The office construction pipeline continued to contract, featuring 45.1 million square feet under development as of March.
• Office investment totaled $10.3 billion during the first quarter of 2025, with office properties trading at an average of $183 per square foot.

Tech hubs struggle as vacancies rise

The national office vacancy rate climbed to 19.9 percent as of the end of March, representing a 170-basis-point increase from the same period last year. Compared to February, however, the rate remained largely unchanged. Markets with a strong tech presence continued to struggle the most; Five major metros recorded vacancy rates exceeding 25 percent, including Austin at 28.5 percent, the Bay Area at 25.5 percent, Denver at 25.2 percent, San Francisco at 28.6 percent and Seattle at 27.5 percent.

Meanwhile, national full-service equivalent listing rates averaged $33.42 per square foot in March, rising by one cent from the previous month and showing a 4.9 percent increase year-over-year. Yardi Matrix data highlights Manhattan as the nation’s priciest office market, with average asking rates reaching $69.03 per square foot. San Francisco followed at $63.83 per square foot, while Miami came in third at $55.84 per square foot.

Development slows, sales remain focused

As of March, the national office construction pipeline stood at 45.1 million square feet, representing just 0.7 percent of total office inventory, according to Yardi Matrix. The ongoing slowdown in development is expected to continue. After a modest 11.9 million square feet of office starts in 2024, only 2.6 million square feet of new groundbreakings had been recorded in the first quarter of 2025.

Boston led all U.S. markets with 6.3 million square feet of office space under construction, amounting to 2.4 percent of its existing inventory. Austin and San Francisco followed, each reporting 3.1 million square feet underway—equal to 3.3 percent and 1.9 percent of their total stock, respectively. Dallas was not far behind with nearly 3.1 million square feet in progress (1.1 percent of inventory), while San Diego completed the top five with 2.7 million square feet under construction, representing 2.8 percent of its office stock.

On the investment side, office sales reached $10.3 billion during the first quarter of the year, with properties changing hands at an average of $183 per square foot. Manhattan led the nation by a wide margin, totaling $2 billion in sales volume, followed by Washington, D.C. with $767 million and the Bay Area with $727 million.

Read the full Yardi Matrix Office Market Report: April 2025.

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National full-service equivalent listing rates averaged $33.41 per square foot in February, edging up 5.7 percent compared to the same time last year, according to the latest Yardi Matrix U.S. office market outlook.

Report Highlights

• The national office vacancy rate reached 19.7 percent at the end of February, unchanged from the previous month.
• National full-service equivalent listing rates averaged $33.41 per square foot, rising by 3 cents from the previous month and 5.7 percent year-over-year.
• The office construction pipeline contracted again, featuring 48.6 million square feet under development as of February.
• Office investment totaled $7 billion during the first two months of 2025, with office properties trading at an average of $177 per square foot.

Office vacancies hold steady

In February, the national office vacancy rate reached 19.7 percent, marking a 180-basis-point increase from the previous year and holding steady compared to January. The ongoing shift toward remote and hybrid work continues to push vacancies higher. San Francisco (27.8 percent), Austin (27.4 percent), the Bay Area (26.2 percent), Denver (25.0 percent) and Detroit (24.6 percent) recorded the highest vacancy rates.

Meanwhile, national full-service equivalent listing rates averaged $33.41 per square foot, edging up 3 cents month-over-month and 5.7 percent year-over-year. According to Yardi Matrix, Manhattan led with the highest asking rate at $68.98 per square foot, followed by San Francisco at $63.63 per square foot.

Office construction slows as demand wanes

In February, the office construction pipeline featured 48.6 million square feet, making up just 0.7 percent of total inventory, Yardi Matrix reports. Office deliveries hit a 10-year low in 2024, and 2025 is on pace for an even smaller total. With only 11.3 million square feet breaking ground last year and no significant rebound expected, demand for new office development has dwindled as vacancies rise, economic uncertainty lingers, and remote work remains prevalent.

Boston led the nation with 6.5 million square feet of office space under construction (2.5 percent of its total inventory). Austin followed with 3.6 million square feet (3.7 percent), while San Francisco had 3.2 million square feet (2.0 percent) underway. San Diego reported 3.1 million square feet (3.2 percent) in development, and Dallas rounded out the top five with 2.9 million square feet (1.0 percent).

Meanwhile, office sales totaled $7 billion in the first two months of the year, with properties trading at an average of $177 per square foot. Manhattan led all markets with $1.8 billion in sales, followed by Chicago ($561 million) and the Bay Area ($467 million).

Read the full Yardi Matrix Office Market Report: March 2025.

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