U.S. office properties, riding an ongoing strong job market, saw asking rents rise 0.4 percent in May 2019 over the previous three-month period, according to a new national report from Yardi® Matrix.
The report notes that although 173 million square feet of office space is under construction, the pipeline is mostly concentrated in metros that have growing space needs or a strong demand for newer product with updated technology and amenities. Brooklyn, N.Y., Nashville, Tenn., and Austin, Texas, have the most space under construction as a percentage of existing stock, while Manhattan, N.Y., has 20.8 million square feet—more than twice as much as any other metro. The national occupancy rate held steady at 13.7 percent in May.
Year-to-date sales totaling $28.5 billion through May were “weak compared to recent years, but activity could pick up as capital markets begin to settle down,” the report says
