Office Vacancy Rate May Be Peaking
The increase in U.S. office vacancies slowed in the third quarter as companies put less space up for sublease and development fell, according to Cushman & Wakefield.
About 14.4% of downtown office buildings were vacant as of the end of September, compared with 14.1% at the end of June and 13.2% in March, the property broker said. The amount of space available for sublease fell for the first time since 2000.
The report signals that vacancies may be peaking after the rate rose from a low of less than 9% in 2000, landlords and analysts said. The number of office jobs grew for a seventh month in September even as nonfarm payrolls fell, according to the Labor Department.