Office vacancy ticked down slightly in April while construction and investment activity remained subdued, according to the latest Yardi Matrix U.S. office market outlook.
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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