Sublease space continues to burden office market
Research - MAY 24, 2021

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Sublease space continues to burden office market

by Released

Marking a 0.2 percent increase year-over-year, the national office rents rested at $38.32 per square foot in April, according to Commercial Edge in its May national office report. Analysis of individual markets showed average full-service equivalent listing rates span from just above $21 per square foot to roughly $83 per square foot.

The national vacancy rate was 16 percent in April, an increase of 290 basis points over April 2020 levels.

Although sales activity was low due to an uncertain future related to COVID-19, sale prices in April reached an all-time-high average of $304 per square foot, as investors refine acquisition strategies.

Office-using employment was up 6.4 percent year-over-year, but there are still 1 million fewer (–3.1 percent) office jobs than the pre-pandemic levels of February 2020.

Nationally, there are 162 million square feet of new space under construction, of which 70 percent is located in urban submark

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