US Office Vacancies Fell To A Seven-Year Low In 2015

US office vacancy rates fell to 13.9% in 2015—their lowest level since 2008—as robust job growth continued to spur demand for office space, a new Cushman & Wakefield report says.

With 700,000 new office jobs added in 2015, absorption of office space last year totaled 81.7M SF. Meanwhile rents pushed higher, rising 4.2% to end the year at $28.15 per SF.

Vacancy rates declined in 69 out of the 87 office markets tracked by Cushman & Wakefield. In 12 markets—mostly San Jose, LA and other West Coast markets—rent growth was in double digits.

The start of the year was plagued by stock volatility and falling commodity prices, causing concerns about a new financial collapse. But Cushman & Wakefield says the office sector will weather this turbulence and continue its expansion, as economic fundamentals in the US remain positive.

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