{"id":1004632693,"date":"2022-11-29T06:25:43","date_gmt":"2022-11-29T14:25:43","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004632693"},"modified":"2022-12-09T02:57:53","modified_gmt":"2022-12-09T10:57:53","slug":"office-sector-braces-ahead-for-new-challenges","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/","title":{"rendered":"Office Sector Braces Ahead for New Challenges"},"content":{"rendered":"<p><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004599457\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/coworking-sector-marks-swift-return\/capture-174\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png\" data-orig-size=\"1022,792\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"commercialedge office report\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;The national office vacancy rate stood at 19.4 percent in May, reflecting persistent challenges in the sector. Image by Terroa\/iStockphoto.com&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png?w=1022\" class=\"alignright wp-image-1004599457 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png?w=300\" alt=\"commercialedge office report\" width=\"300\" height=\"232\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png 1022w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png?resize=300,232 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png?resize=768,595 768w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Economic headwinds, coupled with <a href=\"https:\/\/www.commercialsearch.com\/news\/inflation-raises-the-stakes-for-office-landlords\/\">consecutive interest rate increases<\/a>, the further adoption of work-from-home and remote office arrangements, and growing office footprint reductions contributed to an increase in vacancy rates throughout the year while maintaining uneven\u2014yet historic in some places\u2014rent growth, according to the latest <strong>CommercialEdge<\/strong>\u00a0office report.<\/p>\n<hr \/>\n<p><strong>READ ALSO: <\/strong><a href=\"https:\/\/www.commercialsearch.com\/news\/return-to-office-sentiment-heats-up-boma\/\">Return to Office Sentiment Heats Up<\/a><\/p>\n<hr \/>\n<p>National average full-service equivalent listing rates averaged $37.94 per square foot at the end of October, down 10 basis points year-over-year. The highest increases of full-service rates were recorded in Charlotte (15.9 percent), San Diego (12.7 percent), Boston (12.2 percent) and Miami (11.6 percent), attributed to a strong life sciences sector and <a href=\"https:\/\/www.commercialsearch.com\/news\/cp-groups-forward-thinking-priorities\/\">rising in-migration<\/a>.<\/p>\n<p>The office-using sector added 46,000 new jobs in October, or 3.6 percent over the last 12 months. Meanwhile, the sector generated a total of 910,000 new jobs so far this year, led by the professional and business services sector. Dallas, San Francisco, Atlanta and Austin were the top markets in terms of office-using employment recovery.<\/p>\n<p>Some 135.5 million square feet of office space was under construction across the nation at the end of October, accounting for 2.1 percent of total stock. Thanks to recent waves of in-migration, Southeastern markets <a href=\"https:\/\/www.commercialsearch.com\/news\/the-pandemic-related-acceleration-of-sun-belt-office-markets\/\">were among the most active<\/a> in terms of new office construction, according to CommercialEdge. As of October, Charlotte had more than 5.5 million square feet of office space underway, accounting for 7.4 percent of total stock; Nashville followed closely with 3.2 million square feet under construction, or 5.6 percent of stock.<\/p>\n<p><strong>Vacancy rates continue to climb<\/strong><\/p>\n<p>The national office vacancy rate clocked in at 16.3 percent in October, up 150 basis points from the same period last year. Thanks to the widespread adoption of remote and hybrid work, office footprints have continued to decrease in most markets; Over the past 12 months,\u00a0vacancy rates increased in 86 of the 120 markets\u00a0covered by CommercialEdge, including in 22 of the top 25 markets.<\/p>\n<p>Throughout the last 12 months, the markets with the steepest vacancy increases were Portland (400 basis points) and San Francisco (390 basis points). Meanwhile, only three of the top 25 markets in the nation experienced a decrease in vacancies over that time: Boston (-170 basis points), Charlotte (-120 basis points) and Washington, D.C. (-80 basis points).<\/p>\n<p>Read the full CommercialEdge\u00a0<a href=\"https:\/\/www.commercialedge.com\/blog\/national-office-report\/\">office report<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rising interest rates are putting further pressure on the new-supply pipeline and transaction deal flow, according to the latest CommercialEdge report.<\/p>\n","protected":false},"author":741,"featured_media":1004599457,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[23891,21747,41267],"tags":[50674],"class_list":["post-1004632693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","category-office","category-yardimatrix-reports","tag-commercialedge"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Office Sector Braces Ahead for New Challenges<\/title>\n<meta name=\"description\" content=\"Rising interest rates are putting further pressure on the new-supply pipeline and transaction deal flow, according to the latest CommercialEdge report.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Office Sector Braces Ahead for New Challenges\" \/>\n<meta property=\"og:description\" content=\"Rising interest rates are putting further pressure on the new-supply pipeline and transaction deal flow, according to the latest CommercialEdge report.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-29T14:25:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T10:57:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1022\" \/>\n\t<meta property=\"og:image:height\" content=\"792\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Corina Stef\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/\",\"name\":\"Office Sector Braces Ahead for New Challenges\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png\",\"datePublished\":\"2022-11-29T14:25:43+00:00\",\"dateModified\":\"2022-12-09T10:57:53+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/73262f140f4b0a11baea2dd6f27beadf\"},\"description\":\"Rising interest rates are putting further pressure on the new-supply pipeline and transaction deal flow, according to the latest CommercialEdge report.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png\",\"width\":1022,\"height\":792,\"caption\":\"The national office vacancy rate stood at 19.4 percent in May, reflecting persistent challenges in the sector. Image by Terroa\/iStockphoto.com\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Office Sector Braces Ahead for New Challenges\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/73262f140f4b0a11baea2dd6f27beadf\",\"name\":\"Corina Stef\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/04\/Corina-Stef.jpg?w=96\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/04\/Corina-Stef.jpg?w=96\",\"caption\":\"Corina Stef\"},\"description\":\"Corina Stef started her tenure as a music journalist a decade ago and has been occupying a full-time real estate editor and blogger position since 2017. She is a senior associate editor with Commercial Property Executive and Multi-Housing News who focuses on commercial real estate trends and in-depth stories.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/corina-stef\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Office Sector Braces Ahead for New Challenges","description":"Rising interest rates are putting further pressure on the new-supply pipeline and transaction deal flow, according to the latest CommercialEdge report.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/","og_locale":"en_US","og_type":"article","og_title":"Office Sector Braces Ahead for New Challenges","og_description":"Rising interest rates are putting further pressure on the new-supply pipeline and transaction deal flow, according to the latest CommercialEdge report.","og_url":"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2022-11-29T14:25:43+00:00","article_modified_time":"2022-12-09T10:57:53+00:00","og_image":[{"width":1022,"height":792,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png","type":"image\/png"}],"author":"Corina Stef","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/","url":"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/","name":"Office Sector Braces Ahead for New Challenges","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png","datePublished":"2022-11-29T14:25:43+00:00","dateModified":"2022-12-09T10:57:53+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/73262f140f4b0a11baea2dd6f27beadf"},"description":"Rising interest rates are putting further pressure on the new-supply pipeline and transaction deal flow, according to the latest CommercialEdge report.","breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png","width":1022,"height":792,"caption":"The national office vacancy rate stood at 19.4 percent in May, reflecting persistent challenges in the sector. Image by Terroa\/iStockphoto.com"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/office-sector-braces-ahead-for-new-challenges\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Office Sector Braces Ahead for New Challenges"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/73262f140f4b0a11baea2dd6f27beadf","name":"Corina Stef","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/04\/Corina-Stef.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/04\/Corina-Stef.jpg?w=96","caption":"Corina Stef"},"description":"Corina Stef started her tenure as a music journalist a decade ago and has been occupying a full-time real estate editor and blogger position since 2017. She is a senior associate editor with Commercial Property Executive and Multi-Housing News who focuses on commercial real estate trends and in-depth stories.","url":"https:\/\/www.commercialsearch.com\/news\/author\/corina-stef\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/08\/Capture.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004632693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/741"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004632693"}],"version-history":[{"count":2,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004632693\/revisions"}],"predecessor-version":[{"id":1004633190,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004632693\/revisions\/1004633190"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004599457"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004632693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004632693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004632693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}