{"id":4000,"date":"2026-08-24T13:26:58","date_gmt":"2026-08-24T13:26:58","guid":{"rendered":"https:\/\/www.yardimatrix.com\/blog\/?p=4000"},"modified":"2026-08-24T13:27:00","modified_gmt":"2026-08-24T13:27:00","slug":"us-office-market-outlook","status":"publish","type":"post","link":"https:\/\/www.yardimatrix.com\/blog\/us-office-market-outlook\/","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% year-over-year nationally, compared with 0.3% growth for non-farm jobs and 0.3% 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% appreciated in value. In contrast, the general office sector saw 54% of properties sold at higher values since 2024. Markets with aging populations recorded notably strong results: in Tampa, Fla., 90% of medical office buildings sold at higher prices, compared with 71% 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% of total office completions. Additionally, medical office construction starts accounted for 26.2% of total office starts last year, substantially higher than the 11% 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% in July\u2014130 basis points lower year-over-year. Manhattan recorded the lowest rate among major markets at 10.2%, followed by Miami\u2019s 11.6% and Los Angeles\u2019 14.5%.<\/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% 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) and Miami ($60.33).<\/p>\n\n\n\n<p>The national office pipeline totaled 29.5 million square feet, or 0.4% 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,&nbsp;with assets selling at an average of $198 per square foot. Manhattan&nbsp;led 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","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% year-over-year nationally, compared with 0.3% growth for non-farm jobs [&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-4000","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 | 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 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