logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
United States
  • Global
  • United States
  • Angola
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Morocco
  • Netherlands
  • New Zealand
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Russia
  • Saudi Arabia
  • Singapore
  • Slovakia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Segments

      Advisory Services

      Global Workplace Solutions

      Real Estate Investments

      • Advisory & Transaction Services
      • Capital Markets
      • Project Management
      • Property Management
      • Valuation & Advisory Services
      • Advisory & Transaction Services | Occupier
      • Client Strategy and Consulting
      • Facilities Management
      • Project Management
      • Development Services (Trammell Crow Company)
      • Flexible Space Solutions (Hana)
      • Investment Management (CBRE Global Investors)
    • Services for Investors
      • Appraisal Management
      • Debt and Loan Valuation
      • Federal Government Leases
      • Leasing & Advisory
      • Litigation Support
      • Net Lease Properties
      • Small Balance Lending
      • Corporate Capital Markets
      • Debt & Structured Finance
      • Going Concern Valuation
      • Investment Accounting & Reporting Solutions
      • Loan Portfolio Sales
      • Property Management
      • Telecom Advisory
      • Construction Risk Management
      • Energy & Sustainability
      • Host
      • Investment Banking
      • Loan Servicing
      • Property Sales
      • Valuations for Financial & Tax Reporting
    • Services for Occupiers
      • Business Transition & Move Management
      • Energy & Sustainability
      • Host
      • Location Analytics
      • Portfolio Services
      • Space Enablement
      • Client Strategy and Consulting
      • Expense Management Solutions
      • Labor Analytics
      • Location Incentives
      • Project Management
      • Workplace
      • Corporate Capital Markets
      • Facilities Management
      • Leasing & Advisory
      • Network Advisory
      • Real Estate Accounting
    • Asset Types & Specialties
      • Office
      • Aerospace and Defense
      • Data Centers
      • Golf & Resorts
      • Multifamily
      • Parking
      • Industrial & Logistics
      • Affordable Housing
      • Hotels
      • Land
      • Nonprofit
      • Self-Storage
      • Retail
      • Aviation Properties
      • Gaming
      • Manufactured Housing
      • Omnichannel
      • Senior Housing
    • Industry Sectors
      • Industrial & Logistics
      • Energy, Oil & Gas
      • Law Firms
      • Technology, Media & Telecom
      • Retail
      • Financial Services
      • Life Sciences
      • Data Centers
      • Healthcare
      • Student Housing & Education
  • Properties
  • Research & Insight
    • Latest National Research & Reports
      The Way Forward
      Weekly Insights
      Reopening the World's Workplaces
      COVID Resource Center
  • People & Offices
  • About CBRE
    • Careers
      Case Studies
      Corporate Information
      Corporate Responsibility
      Executive Leadership - Global
      Investor Relations
      Media Center
      Suppliers

Next

Press Release
CBRE Recognized for Real Estate Industry’s "Best Use of Automation" by Realcomm
  • About CBRE
  • Media Center
  • U.S. Office Vacancy Holds Steady in Q3 2016

U.S. Office Vacancy Holds Steady in Q3 2016

October 10, 2016
  • Email
  • Share
  • Tweet
  • Share

Suburbs Continue to Outperform Downtown Markets

Los Angeles, October 10, 2016 – Vacant space in the U.S. office market held steady during the third quarter of 2016 (Q3 2016), at 13.1 percent, according to the latest analysis from CBRE Group, Inc. The national office vacancy rate remained at the lowest level since 2008, with a 30 basis points (bps) decline over the past year.

The office market is being helped by steady demand for space and limited new construction. ”Firms are adding space, but at a more modest pace than in recent years, reflecting slower overall job creation,“ said Jeffrey Havsy, Americas’ chief economist for CBRE. “With supply and demand relatively in balance, vacancy has plateaued for the moment, but the office market should remain healthy as new construction deliveries slow over the next 6-8 quarters.”

Continuing a recent pattern, the suburbs outperformed downtowns, with vacancy falling 10 bps, to 14.3 percent in the suburbs, but increasing 20 bps, to 10.7 percent in downtowns. After lagging downtowns for much of the recovery, the suburbs have now performed better than downtowns for four straight quarters.

“Despite their rumored demise, the suburbs continue to perform soundly. This is especially true of those locations that offer, a live, work, play dynamic and have good transportation access,“ noted Mr. Havsy. “The suburbs have been painted with a negative brushstroke, but that labeling masks the diversity among the various submarkets. Those locations that offer appropriate amenities, have good access and offer modern facilities continue to lease well.”

A majority of U.S. markets saw improved conditions during Q3 2016, with vacancy declining in 37 of 63 office markets, rising in 22, and remaining unchanged in four. The largest quarterly declines in vacancy were recorded in Tucson (170 bps), Cincinnati (130 bps) and Raleigh (120 bps). West Palm Beach, Newark, Las Vegas, Albany, Riverside and Sacramento each declined by 90 bps or more.

Mid-sized markets have been the best performers over the past year.  Compared with Q3 2015, Tucson, St. Louis, Raleigh, Riverside, Oakland, Sacramento, Cincinnati and Tampa have experienced the sharpest declines in vacancy.

The nation’s lowest vacancy rates in Q3 2016 were in Nashville (5.5 percent), San Francisco (6.7 percent), Raleigh (8 percent), Austin (8.1percent), Seattle (8.6 percent), Oakland (8.7 percent), San Jose (8.9 percent) and Pittsburgh (9.2 percent).


​About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue).  The company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide.  CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.  Please visit our website at www.cbre.com.
​

Media Contacts

Christy Ingle Headshot
Christy Ingle
Vice President, Corporate Communications
+1 949 751 9200
  • Corporate Information
  • Corporate Responsibility
  • Case Studies
  • Media Center
  • About Us
  • Careers
  • People and Offices
  • Global Leadership
  • Investor Relations
  • Contact Us
  • Global Web Privacy and Cookie Policy
  • Sitemap
  • Terms of Use
  • United States Privacy Policy
  • Our Response to SCHREMS II
  • Twitter
  • Facebook
  • LinkedIn