US Office Asking Rents Dip

US Office Asking Rents Dip In June

USA – Data from CommercialEdge showed that the average asking rents of listed office space across the country slid 2.6 percent year-on-year to US$37.58 psf in June, while the overall office vacancy rate rose 20 basis points to 15.2 percent, reported GlobeSt on Friday (22 July, SGT).

In particular, Charlotte was the best performing office market for rental growth, as office rents there rose by 15 percent to S$33.45 psf as compared to the same period in the preceding year. Boston and Miami’s office sectors also did well as office rents there respectively climbed by 12 percent and 8.4 percent on an annual basis.

Notably, Boston is the only office market among those tracked by CommercialEdge where the office vacancy level remains under 10 percent. And office rent’s in the city performed well mainly due to the life sciences sector.

Aside from that, office sales volume across the United States hit US$43.7 billion in H1 2022. About a third of that sales activity occurred in gateway cities, which accounted for 41.5 percent of nationwide office sales volume 5 years ago.

As of June 2022, almost 151.7 million sq ft of new office space was under development.

“Projects that had shovels in the ground in June represented 2.2 percent of the national office stock, with an additional 6.2 percent in the planning stages,” analysts from CommercialEdge said.

“However, it remains to be seen how much of that planned inventory will actually move forward, considering rising interest rates, plateauing vacancies and the solidification of hybrid and work from home models,” they added.

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