Office Vacancy Stabilizes Amid Rising Completions

  • New supply outpaced demand in Q4 by 3.6 million sq. ft. For full-year 2019, however, demand surpassed new supply by 5.4 million sq. ft.
  • The overall vacancy rate in Q4 was unchanged from Q3 at 12.1% but 30 basis points lower than a year ago.
  • Annual asking rent growth rose to 5.2%, the fastest pace since 2016.
  • Completions totaling 50.9 million sq. ft. in 2019 marked the eighth consecutive year of increased supply growth.
  • Strong U.S. office-using jobs growth of 1.7% year-over-year in Q4 resulted in the creation of more than 460,000 jobs.