Q4 Update: Office Leasing Hits Highest Level Since The Crash

Ryan Boysen

Looks like the boom has hit the office space sector with a bang as US employers leased more office space in Q4' 15 than at any time since 2007, Reis data reveals.

Employers added 15.3M SF of office space last quarter, bringing the total occupied to 42.4M SF for 2015—a substantial leap from 2014’s 31.4M SF.

Analysts say demand is ramping up, with the tech sector leading the charge and a strengthening economy providing a nationwide boost. 

Rents are also up, not too coincidentally, with Seattle seeing the biggest jump at 8.1% for an average of $27.67 per SF, followed by the Bay Area's San Francisco and San Jose with 6.1% and 6% increases, respectively.

Despite the nationwide surge, cities with a large connection to the energy sector—Houston, for one, has a problem—are seeing dips due to a global oil glut. The Energy Capital of the World actually saw vacancy rates rise last year, a trend analysts expect to continue. [WSJ]

Continue reading this story with a free account

Log in or register
Related Topics: Office rents , Office space , Tech sector
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Trump's New Canadian Tariffs To Spike Additional Materials Costs

Wells Fargo Moves To Foreclose On $1.3B Workspace Property Trust Portfolio

Turner Construction Hit With Cyberattack, Hackers Claim Leaks Of Military Info, NDAs

Latest Round Of Fannie Mae Senior Staff Layoffs Has Multifamily Sector Anxious

Why Hines Is Restarting Its Development Engine

Cross Ocean Partners, Fuller Realty Acquire 829K SF Houston Office Campus

How Integrated Infrastructure Can Help AI Data Centers Deploy Faster, Build Smarter

Nvidia Buys Stake In Data Center Power Company

Invesco Cuts Fees, Adds Incentives To Quell Fund Redemption Requests

Investors Anchor Big Capital Into Marinas, Betting On Shallow Supply

NYC Office Investor Warns It Could Go Under As Defaults Pile Up

Deutsche Bank Takes 5 Floors At Oaktree And Quadrant's Canary Wharf Scheme