National Asking Rents For Office Space Rise Again

Written by Michael Tucker

The national office market continues to improve, largely due to a strong job market with just a 3.9 percent unemployment rate, reported Transwestern, Houston.

Office-using employment grew at a 1.6 percent annual growth rate, the firm's Real Estate Outlook office market report said.

Absorption totaled 18.8 million square feet in the second quarter and vacancy remained stable at 9.6 percent. Average asking rents increased by 3.4 percent annually to $25.71 per square foot.

"As more individuals return to the workforce citing real wage growth, further tightening in the core metrics is anticipated through the balance of the year," said Transwestern Research Director Stuart Showers.

The rise in rental rates represented the twenty-first consecutive quarterly increase, with Minneapolis, Charlotte, N.C., Columbus, Ohio, San Antonio and Austin, Texas leading the nation in year-over-year rent growth. San Francisco edged out New York for the highest asking rates in the country at $74.40 per square foot, Showers said.

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