Despite the COVID-19 pandemic sending workers home, office occupancy remains surprisingly stable nationally, according to Reis' Q2 2020 Office Market Rankings.
In Q2, the office vacancy rate ticked up 10 basis points versus the first quarter, and 30 basis points from the end of 2019. Asking rents decreased 0.1% in Q2 and effective rents dropped 0.3% for the period.
Still, some cities are performing much better than others. The strongest office markets in Q2 were on the West Coast, with Seattle posting 4.5% effective rent growth from Q2 2019 to Q2 2020. San Jose was second with a 4.1% increase in the same timeframe. Charlotte (3.9%), Austin (3.4%) and Oakland-East Bay (3.2%) rounded out the top five.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
