As of September, the national office vacancy rate reached 18.6 percent, while the coworking sector recorded significant expansions, 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 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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