The national office vacancy rate stayed at 19.4 percent in June, while the sector struggles as loans maturities hit.
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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