U.S. Office Market Outlook – September 2026

Report highlights

• The national office vacancy rate stood at 17.8% at the end of September, down 80 basis points year-over-year
• National full-service equivalent listing rates averaged $33.18 per square foot, down two cents from August but up 1.2% year-over-year
• The office construction pipeline featured 32.2 million square feet under development, representing 0.5% of total stock
• Office sales totaled $50.5 billion across 2,272 transactions through September, with properties trading at an average of $197 per square foot

Office vacancy falls, listing rates rise

The national office vacancy rate reached 17.8% in September, marking an 80-basis-point decrease from the same period last year. Despite the improvement, several major metros continued to record elevated vacancies, led by San Francisco at 26.7%, Seattle at 24.8% and Austin at 24.5%.

Dallas recorded one of the largest annual improvements, with vacancy falling 360 basis points to 18.6%. Meanwhile, San Diego continued to face pressure from excess supply, with vacancy increasing 140 basis points year-over-year to a record 23.7%.

The national full-service equivalent listing rates averaged $33.18 per square foot in September, down two cents from August but up 1.2% year-over-year. Manhattan remained the most expensive office market, with asking rates averaging $72.03 per square foot, followed by San Francisco at $64.92 and Miami at $61.26.

Office development remains subdued

The national pipeline comprised 32.2 million square feet as of September, accounting for just 0.5% of existing inventory. Office completions are expected to bottom out at approximately 26 million square feet in 2027, as developers remain cautious amid rising construction costs.

Manhattan led the nation with nearly 3.6 million square feet underway, followed by Dallas, with 3.3 million and Boston, with approximately 3 million. Miami recorded the largest pipeline relative to existing inventory at 3.2%, with construction and planned projects together accounting for 7% of its stock.

Office investment activity totaled $50.5 billion through September, with assets trading at an average of $197 per square foot. Manhattan led the nation in investment activity, with $5.7 billion in sales. Metros that followed include the Bay Area ($4.6 billion) and Dallas ($3.7 billion).

Read the full Yardi Matrix Office Market Outlook: October 2026.