On a national level, vacancy rates for office markets were up by 20 basis points year-over-year in the fourth quarter, reaching 8.9 percent. Compared to 2017, vacancy rates increased by 10 basis points. Regionwide, the most notable gains came from the Midwest and South, where rates were up by 40 basis points compared to the same interval in 2018. Vacancy rates increased by 20 basis points in the Northeast. The West is the only region where office vacancy rates dropped year-over-year, down by 10 basis points, to 8.4 percent.
Office vacancy rates for the fourth quarter of 2020 are forecasted to decrease by 30 basis points on a national level. Vacancy rates in the West and South are expected to increase by 40 basis points, followed by the Midwest, up by 30 basis points. Vacancy in the Northeast is forecasted to grow by 20 basis points, the smallest increase regionwide.
—Posted on May 29, 2020