{"id":10852,"date":"2026-08-24T13:26:00","date_gmt":"2026-08-24T13:26:00","guid":{"rendered":"https:\/\/www.yardimatrix.com\/blog\/?p=10852"},"modified":"2026-09-21T08:16:41","modified_gmt":"2026-09-21T08:16:41","slug":"us-office-market-outlook-august-2026","status":"publish","type":"post","link":"https:\/\/www.yardimatrix.com\/blog\/us-office-market-outlook-august-2026\/","title":{"rendered":"U.S. Office Market Outlook \u2013 August 2026"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-report-highlights\">Report highlights<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The national office vacancy rate stood at 17.7 percent in July, down 130 basis points year-over-year.<\/li>\n\n\n\n<li>National full-service equivalent listing rates averaged $33.58 per square foot, nine cents lower from June but up 2.6% year-over-year.<\/li>\n\n\n\n<li>The national office construction pipeline featured 29.5 million square feet underway, representing 0.4% of existing stock.<\/li>\n\n\n\n<li>Office investment reached $36.4 billion as of July, with properties trading for an average of $198 per square foot.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-medical-office-gains-share-as-traditional-office-demand-softens\">Medical office gains share as traditional office demand softens<\/h2>\n\n\n\n<p>Demand for medical office space continued to benefit from the sector&#8217;s limited exposure to remote work adoption and favorable demographic trends, distinguishing itself from traditional workplaces. Employment in the education and health-care sectors expanded 2.4 percent year-over-year nationally, compared with 0.3 percent growth for non-farm jobs and 0.3 percent decline in office-using segments.<\/p>\n\n\n\n<p>Medical office investment also highlights the sector\u2019s resilience. Among the nearly 500 assets sold since 2024 with two transaction prices available for comparison, 67 percent appreciated in value. In contrast, the general office sector saw 54 percent of properties sold at higher values since 2024. Markets with aging populations recorded notably strong results: in Tampa, Fla., 90 percent of medical office buildings sold at higher prices, compared with 71 percent of general office.<\/p>\n\n\n\n<p>The segment also gained a larger share of development as more than 7 million square feet of medical office space was delivered in 2025, representing 16.8 percent of total office completions. Additionally, medical office construction starts accounted for 26.2 percent of total office starts last year, substantially higher than the 11 percent share from 2020.<\/p>\n\n\n\n<iframe title=\"Top 10 Markets for Construction &amp;amp; Planned Activity as Percentage of Stock\" aria-label=\"Split Bars\" id=\"datawrapper-chart-nPDi6\" src=\"https:\/\/datawrapper.dwcdn.net\/nPDi6\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"489\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">(function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})();<\/script>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-shrinking-pipeline-accompanies-rising-investment-activity\">Shrinking pipeline accompanies rising investment activity<\/h2>\n\n\n\n<p>The national office vacancy rate reached 17.7 percent in July\u2014130 basis points lower year-over-year. Manhattan recorded the lowest rate among major markets at 10.2 percent, followed by Miami\u2019s 11.6 percent and Los Angeles\u2019 14.5 percent.<\/p>\n\n\n\n<p>The national full-service equivalent listing rate stood\u00a0at $33.58 per square foot as of July\u2014nine cents lower from the previous month but 2.6 percent higher year-over-year. Manhattan remained the country\u2019s most expensive market at $71.95 per square foot, followed by San Francisco at ($63.41 per square foot) and Miami ($60.33 pr square foot).<\/p>\n\n\n\n<p>The national office pipeline totaled 29.5 million square feet, or 0.4 percent of existing inventory. Boston led with 3.4 million square feet underway, followed by Manhattan (2.9 million square feet) and Dallas (2.8 million square feet).<\/p>\n\n\n\n<p>The office investment activity totaled $36.4 billion across 1,576 transactions through July,\u00a0with assets selling at an average of $198 per square foot. Manhattan\u00a0led with nearly $5.2 billion in sales, followed by Dallas ($2.9 billion) and the Bay Area ($2.6 billion).<\/p>\n\n\n\n<p>Read the full Yardi Matrix Office Market Outlook: <a href=\"https:\/\/www.yardimatrix.com\/office-national\/matrix-office-national-report-august-2026\/\" target=\"_blank\" rel=\"noreferrer noopener\">August 2026<\/a>.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Report highlights Medical office gains share as traditional office demand softens Demand for medical office space continued to benefit from the sector&#8217;s limited exposure to remote work adoption and favorable demographic trends, distinguishing itself from traditional workplaces. Employment in the education and health-care sectors expanded 2.4 percent year-over-year nationally, compared with 0.3 percent growth for [&hellip;]<\/p>\n","protected":false},"author":2991,"featured_media":10744,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[20,4],"tags":[427],"class_list":["post-10852","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-office-market","category-real-estate-trends","tag-office-market-outlook"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>U.S. Office Market Outlook \u2013 August 2026 - Yardi Matrix Blog<\/title>\n<meta name=\"description\" content=\"As of July 2026, the national office vacancy rate stood at 17.7 percent, representing a 130-basis-point year-over-year drop.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.yardimatrix.com\/blog\/us-office-market-outlook-august-2026\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"U.S. Office Market Outlook \u2013 August 2026\" \/>\n<meta property=\"og:description\" content=\"As of July 2026, the national office vacancy rate stood at 17.7 percent, representing a 130-basis-point year-over-year drop.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.yardimatrix.com\/blog\/us-office-market-outlook-august-2026\/\" \/>\n<meta property=\"og:site_name\" content=\"Yardi Matrix Blog\" \/>\n<meta property=\"article:published_time\" content=\"2026-08-24T13:26:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-09-21T08:16:41+00:00\" \/>\n<meta name=\"author\" content=\"Simona Tudose\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.yardimatrix.com\/blog\/wp-content\/uploads\/sites\/39\/2026\/07\/iStock-2230998709.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Simona Tudose\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"U.S. Office Market Outlook \u2013 August 2026 - 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