As of June, the national office vacancy rate reached 17.7percent.<\/p>\n\n\n\n
Historically low office values are paving the way for new opportunities for office-to-multifamily conversions. Yardi\u2019s Conversion Feasibility Index identifies 2 billion square feet of office space as candidates for such projects, with Tier I properties considered the most suitable for multifamily conversion and accounting for 4.6 percent of that stock. Office-to-multifamily projects completed or under construction totaled 11.8 million square feet in 2025, the highest level recorded for any year.<\/p>\n\n\n\n
Chicago shows how discounted sales can support adaptive reuse, as 59 percent of the deals recorded since 2024 were at a discount and has a local inventory of 95 million square feet suitable for conversion. In contrast, Seattle has 47.5 million square feet of suitable space but has recorded less activity.<\/p>\n\n\n\n
The national office vacancy rate reached 17.7 percent in June\u2014170 basis points lower year-over-year. San Francisco recorded the highest rate at 25.8 percent, followed by Seattle (24.7 percent) and Austin (24.5 percent). Portland\u2019s vacancy remained at 22.1 percent after stagnating above 20 percent since late 2024.<\/p>\n\n\n\n
The national full-service equivalent listing rate stood\u00a0at $33.67 per square foot in June, up six cents from the previous month and down 2.4 percent from a year ago. Manhattan recorded the highest average listing rates at $72.02 per square foot, followed by San Francisco ($65.13 per square foot).<\/p>\n\n\n\n