The national office vacancy rate remained elevated in July while investment activity picked up, according to the latest Yardi Matrix U.S. office market outlook.
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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