{"id":50262,"date":"2026-09-17T07:57:12","date_gmt":"2026-09-17T04:57:12","guid":{"rendered":"https:\/\/www.commercialcafe.com\/blog\/?p=50262"},"modified":"2026-09-17T14:58:38","modified_gmt":"2026-09-17T11:58:38","slug":"national-office-report","status":"publish","type":"post","link":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/","title":{"rendered":"YTD Office Sales Near $43B as Key Markets Carry Bulk of Pipeline &#038; Loan Maturities Pressure Burdened Markets"},"content":{"rendered":"<p><span style=\"color: #0bbfeb;\"><strong>Key Takeaways:<\/strong><\/span><\/p>\n<ul>\n<li>In August, the\u00a0<strong>national office\u00a0vacancy rate<em>\u00a0<\/em>was 17.8%<\/strong>\u00a0following a decrease of 90 basis points (bps) year-over-year (Y-o-Y).<\/li>\n<li>The\u00a0<strong>national office\u00a0listing rate\u00a0averaged $33.20 per square foot<\/strong>\u00a0last month,\u00a0which was 1.7% higher than values recorded in August 2025.<\/li>\n<li>Nationally, the office supply pipeline picked up to reach\u00a0<strong>roughly 32.4 million square feet of office space under construction\u00a0<\/strong>last month.<\/li>\n<li>With more than $5.1 billion in deals closed since the start of the year,\u00a0<strong>Manhattan, N.Y., topped the list for sales<\/strong>. It was followed by California\u2019s Bay Area ($3.4 billion), as well as Dallas ($3 billion) as the only other markets to exceed $3 billion in year-to-date sales.<\/li>\n<li>Among the seven large U.S. office markets where vacancy was below the national average,\u00a0<strong>Manhattan, N.Y.; Miami; and Los Angeles averaged the lowest vacancy rates<\/strong>\u00a0in August.<\/li>\n<li>Last month, <strong>Western and Northeastern U.S. markets had most of the leasing rates that were above the national average<\/strong>, while Southern and Midwestern markets made up the majority of markets with asking rates below the national average.<\/li>\n<li><strong>Manhattan, N.Y.; Boston; and Dallas had the most active construction pipelines. <\/strong>Last month, they were the only markets where more than 3 million square feet of new office space was in development. In total, these three accounted for more than 32% of the national pipeline total in August.<\/li>\n<\/ul>\n<h3><span style=\"color: #0bbfeb;\">Trends &amp; Industry News<\/span><\/h3>\n<h2>Approaching Loan Maturities Create Uncertainty in Office Sector<\/h2>\n<p>Risk and uncertainty in the U.S. office sector looks poised to grow. That\u2019s because increasingly volatile economic conditions are likely to compound the challenges stemming from office loan maturities, which are expected to peak throughout the next few years.<\/p>\n<p>According to Yardi Matrix research data, 14,000 office properties are encumbered by loans that have recently matured or are due to mature by the end of 2028 with loans totaling $289.2 billion \u2014 33.5% of total loan volume. Nearly 59% of these loans originated before 2021 with the baked-in assumption that high demand would sustain loan obligations through maturity.<\/p>\n<p>However, with office-using jobs declining since mid-2023, existing demand being concentrated largely in the highest quality assets and hybrid work putting down persistent roots (among other factors), pressure is building as office loans approach maturity.<\/p>\n<blockquote><p><span data-olk-copy-source=\"MessageBody\">\u201cThe office debt problem is not going away yet. With interest rates and stubbornly low physical occupancy both adding to the headwind, the expectation is for increased delinquencies and distress.\u201d<\/span><\/p>\n<p><strong>Peter Kolaczynski, Director, Yardi Research<\/strong><\/p><\/blockquote>\n<p>Plus, neither struggle nor recovery have been evenly spread among top markets in the U.S. \u00a0For example, eight of the 25 largest metros we surveyed for this report had vacancy rates above 20% last month. Meanwhile, maturing loan volume in high-vacancy metros totals $61.6 billion and accounts for 7.1% of all office loans.<\/p>\n<p>Specifically, in Seattle, which is contending with a 24.7% vacancy rate, 70.1% of the local $8.3 billion in maturing loan volume originated before 2021. High-risk metros also include California\u2019s Bay Area, where vacancy was at 22.8% and 64% of the $13.5 billion in maturing loans originated prior to 2021. Similarly, Portland, Ore., (23% vacancy) is looking at 55.9% pre-2021 loans out of its $1.5 billion that are approaching maturity.<\/p>\n<p>Likewise, markets where more than half of maturing loans originated before 2021 also include San Francisco (25.9% vacancy, $12.6 billion maturing loans, 55.1% pre-2021) and Houston (23.6% vacancy, $7.3 billion maturing, 50.9% pre-2021).<\/p>\n<p>Moreover, as these loans mature, the levels of distress are likely to increase further due to the widening gap in funding: According to recent reports by Trepp, the CMBS delinquency rate for office loans rose to 12% in August. And, during the last few years, nearly half of all repeat-sale office properties changed hands at a discount to their previous price tag. As such, office property values are likely to remain under pressure until the wave of maturities subsides. Of course, as interest rates remain elevated, prospects for refinancing have also diminished.<\/p>\n<h3><span style=\"color: #0bbfeb;\">Listing Rates &amp; Vacancy<\/span><\/h3>\n<h2>Manhattan, N.Y., Performance Stands Out Among Major Metros<\/h2>\n<p>The national average full-service equivalent listing rate for office space was $33.20 per square foot last month after an increase of 1.7% Y-o-Y. At the same time, the national vacancy rate dropped 90 bps compared to the previous year to rest at 17.8% at the close of August.<\/p>\n<p>Notably, of the 25 largest markets that we analyzed, 13 saw decreases in their respective vacancy rates when compared to August of last year. At the higher end of the spectrum, some of the top markets we surveyed continue to struggle with office vacancy holding above 20%.<\/p>\n<p>The lowest vacancy rate among the top 25 U.S. metros was in Manhattan, N.Y. Marking a 340-bps Y-o-Y drop, office vacancy here was a little more than 10% last month. Supported by the continued flight-to-quality trend, class A office properties consistently outperform other classes in the metro. Accordingly, in August, vacancy for class A Manhattan office space was at 9%, while class B properties were at 12.2% and the class C segment averaged 14.3%.<\/p>\n<div id=\"datawrapper-vis-L7wPS\" style=\"min-height: 835px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/L7wPS\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-L7wPS\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/L7wPS\/full.png\" alt=\"Top Listings by Metro Area: August 2026 (Table)\" \/><\/noscript><\/div>\n<h3><span style=\"color: #0bbfeb;\">Transactions<\/span><\/h3>\n<h2>Atlanta Office Sale Prices Land 33% Below 2022 Peak<\/h2>\n<p>In August, year-to-date office sales added up to nearly $43 billion across 1,850 transactions, while sale prices averaged $205 per square foot. What\u2019s more, a total of 19 of the top 25 metros we analyzed for this report saw overall sales in excess of $500 million during the first eight months of 2026. Among them, 11 markets saw more than $1 billion each in year-to-date sales.<\/p>\n<p>Last month, year-to-date office sales in Atlanta surpassed $875 million. Although prices in the Georgia market have seen an uptick recently, the year-to-date average sale price here approached $158 per square foot \u2014 down 32.8% from its $235-per-square-foot peak in 2022, but only falling 7.1% from 2019 prices.<\/p>\n<p>Granted, transactions of properties selling at a discount have been a noteworthy occurrence across major markets in the U.S., and Atlanta is no stranger to this trend. One example is a sale that closed in June in which Real Capital Solutions acquired the 650,000-square-foot office building located at 101 Marietta St. from The Dilweg Companies. The new owner paid $49.5 million for the property, which was a roughly 28% discount from its previous change of hands in 2015, when the property commanded nearly $69 million.<\/p>\n<div id=\"datawrapper-vis-8oStN\" style=\"min-height: 520px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/8oStN\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-8oStN\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/8oStN\/full.png\" alt=\"2026 Year-To-Date Sales (Millions) (Table)\" \/><\/noscript><\/div>\n<h3><span style=\"color: #0bbfeb;\">Supply<\/span><\/h3>\n<h2>Office Construction Sparse in Central Business Districts<\/h2>\n<p>As of August, more than 32 million square feet of office space was under construction in the U.S. markets we tracked for this report. Looking at individual market pipelines, three of the 25 markets we analyzed each had more than 3 million square feet in development last month \u2014 Manhattan, N.Y.; Boston; and Dallas.<\/p>\n<p>Then, in fourth place, was Miami, where 2.22 million square feet was in development at the close of August. Otherwise, San Diego (1.31 million square feet in the pipeline) and Los Angeles (1.26 million) were the only other markets where developers had more than 1 million square feet of space in the works.<\/p>\n<p>Combined, these six markets accounted for nearly 47% of the modest national office construction pipeline last month.<\/p>\n<p>Notably, as the persistent flight-to-quality trend continues to concentrate demand into fewer properties, office assets in central business districts (CBDs) have struggled to maintain their values: Since 2024, 73% of properties sold in CBDs with two or more sale prices for comparison have traded at a discount, as compared to 48% of urban transactions and 42% of suburban sales.<\/p>\n<p>Consequently, this has translated into a more modest construction pipeline. According to Yardi research data, office space currently in development in CBDs adds up to just 2.7 million square feet (0.2% of stock), which is down 61.3% from August of last year. This level of activity was also in significant contrast to the urban pipeline outside of CBDs, which totaled 17.2 million square feet (1.2% of stock) in August \u2014 down 4.1% Y-o-Y \u2014 as well as the suburban pipeline, which was at 12.4 million square feet last month (0.3% of stock), dropping 18.8% from 12 months prior.<\/p>\n<div id=\"datawrapper-vis-kDlDB\" style=\"min-height: 520px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/kDlDB\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-kDlDB\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/kDlDB\/full.png\" alt=\"Office Space Under Construction (Million Sq. Ft.) (Table)\" \/><\/noscript><\/div>\n<h3><span style=\"color: #0bbfeb;\">Western Markets<\/span><\/h3>\n<h2>San Diego &amp; Los Angeles Lead Office Construction<\/h2>\n<p>Vacancy rates were above the national average of 17.8% in August in the majority of the Western U.S. markets that we surveyed for this report. With the exception of Los Angeles (14.5% vacancy) and Phoenix (17.2%), all markets we analyzed in this region averaged vacancy rates at or higher than 20% last month.<\/p>\n<p>More precisely,\u00a0vacancy for\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/ca\/san-francisco\/\" target=\"_blank\" rel=\"noopener\">office space in San Francisco<span class=\"sr-only\">(opens in new tab)<\/span><\/a>\u00a0was the highest in the region, averaging nearly 26% in August. Next, Seattle was second with vacancy averaging 24.7% last month. In the same vein, San Diego was at 24.2% vacancy \u2014 the one other large market in the region to exceed 24% last month.<\/p>\n<p>San Francisco also topped the regional list for listing rates: Asking rates here averaged a little more than $65 per square foot in August, which was roughly double the national average of $33.20.<\/p>\n<p>Nearby, Bay Area office space in California remained the second-priciest in the region last month with asking rates averaging $56.29 per square foot \u2014 the only other Western U.S. market on our list where average rates surpassed $50 per square foot in August.<\/p>\n<p>Not to be outdone, the Los Angeles market (#3) and\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/ca\/san-diego\/\" target=\"_blank\" rel=\"noopener\">office space in San Diego<span class=\"sr-only\">(opens in new tab)<\/span><\/a> (#4) each averaged more than $40 per square foot \u2014 the only other markets in the region to do so \u2014 and closed out the standout block of California markets ranking at the top of the list for asking rates.<\/p>\n<div id=\"datawrapper-vis-LkATS\" style=\"min-height: 600px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/LkATS\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-LkATS\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/LkATS\/full.png\" alt=\"West Regional Highlights (Table)\" \/><\/noscript><\/div>\n<p>&nbsp;<\/p>\n<p>Otherwise, Portland, Ore.; Phoenix; and Denver remained the only large markets in the Western U.S. where office asking rates were below the national average in August, each averaging close to or less than $30 per square foot.<\/p>\n<p>Next, when looking at office sales in the region, data showed that California markets continued to hold a comfortable lead. In this case, California\u2019s Bay Area \u2014 which saw more than $3.4 billion in sales close during the first eight months of the year \u2014 took the top spot, followed by the neighboring San Francisco market, where year-to-date transactions reached nearly $2.8 billion. In fact, at the close of August, they were the only two Western U.S. office markets where sales had surpassed the $2-billion mark.<\/p>\n<p>Further south, Los Angeles commanded the third-highest sales total in the region so far this year ($1.6 billion). It was followed by sales of\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/az\/phoenix\/\">Phoenix office space<\/a>, which added up to $929 million since the start of the year through August. Next, San Diego and Denver were the only other Western U.S. markets to see office sales exceed $500 million during the first eight months of the year.<\/p>\n<p>Of course, high-profile assets\u00a0in gateway markets continue to command top-tier prices.\u00a0Namely, San Francisco\u00a0office sales closed through August averaged $536 per square foot, which was the highest in the region last month. At a distance, California\u2019s Bay Area ($355 per square foot) and Seattle ($306) were the second- and third-most expensive office investment destinations in the Western U.S. last month.<\/p>\n<p>California markets also led the region in terms of development in August:\u00a0San Diego had a little more than 1.31 million square feet under construction, followed by Los Angeles, where 1.26 million square feet was\u00a0under development. Together, they accounted for nearly 46% of the roughly 5.6 million square feet currently in the pipeline across the largest markets in the Western U.S. region.<\/p>\n<h3><span style=\"color: #0bbfeb;\">Midwestern Markets<\/span><\/h3>\n<h2>Chicago YTD Office Sales Approach $1.3 Billion<\/h2>\n<p>The top Midwestern U.S. office markets we looked at for this report remained some of the most affordable in the country in August, both in terms of average listing rate and for-sale price per square foot.<\/p>\n<p>In this region, asking rates for <a href=\"https:\/\/www.commercialcafe.com\/office\/us\/mi\/detroit\/\" target=\"_blank\" rel=\"noopener\">Detroit office space<span class=\"sr-only\">(opens in new tab)<\/span><\/a>\u00a0were the most accessible with rates here averaging $20.85 per square foot. Next,\u00a0the average asking rate for\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/mn\/minneapolis\/\" target=\"_blank\" rel=\"noopener\">office space in Minneapolis<span class=\"sr-only\">(opens in new tab)<\/span><\/a>; St. Paul, Minn.; and the wider Twin Cities metro submarkets rested at $27.35 per square foot. At the same time, office vacancy in the Minnesota metro was the closest to the national average among the top Midwestern markets we analyzed.<\/p>\n<p>Unsurprisingly,\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/il\/chicago\/\" target=\"_blank\" rel=\"noopener\">Chicago office space<span class=\"sr-only\">(opens in new tab)<\/span><\/a> was the region\u2019s priciest for leasing in August with asking rates here averaging $28.38 per square foot. That said, occupancy levels in the Illinois market last month kept vacancy above 19%, which was the highest in the region last month.<\/p>\n<div id=\"datawrapper-vis-GvwpI\" style=\"min-height: 520px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/GvwpI\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-GvwpI\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/GvwpI\/full.png\" alt=\"Midwest Regional Highlights (Table)\" \/><\/noscript><\/div>\n<p>&nbsp;<\/p>\n<p>The highest regional office sales total so far this year was also in Chicago: By the end of August, the largest office market in the Midwest had seen nearly $1.3 billion worth of office space change hands since the beginning of the year. Then, at quite a distance, year-to-date office sales in Minnesota\u2019s Twin Cities followed in second place with a total of $521 million through August 2026.<\/p>\n<p>Yet, when looking at market expansion, development in the region remained quite slow last month with a combined total of 1.73 million square feet of office space under construction in August across the Midwestern U.S. markets we analyzed.<\/p>\n<h3><span style=\"color: #0bbfeb;\">Southern Markets<\/span><\/h3>\n<h2>Miami Office Space Tops Listing Rates &amp; Occupancy<\/h2>\n<p>In the South, Miami; Austin, Texas; and Washington, D.C. remained the region\u2019s priciest markets for asking rates, as well as the only Southern U.S. markets to see full-service equivalent listing rates average more than $40 per square foot in August.<\/p>\n<p>At the opposite end of the ranking,\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/fl\/orlando\/\" target=\"_blank\" rel=\"noopener\">office space in Orlando, Fla.<span class=\"sr-only\">(opens in new tab)<\/span><\/a>, had the lowest asking rate average in the region. As a matter of fact, it was one of only two markets in this group to average less than $30 per square foot last month (the other being Houston).<\/p>\n<p>Looking at year-to-date office sales, six of the 10 Southern U.S. markets we analyzed for this report recorded totals higher than $500 million through last month. Furthermore, five of them saw year-to-date sales surpass the $1 billion mark: First, Dallas had the highest year-to-date sales total as office transactions here amounted to a little more than $3 billion last month. Next, Austin, Texas, office sales added up to nearly $2.6 billion through August. The third-highest year-to-date sales total in the South was for\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/dc\/washington\/\" target=\"_blank\" rel=\"noopener\">Washington, D.C. office space<span class=\"sr-only\">(opens in new tab)<\/span><\/a>, which reached almost $2.4 billion last month.<\/p>\n<div id=\"datawrapper-vis-7MEch\" style=\"min-height: 680px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/7MEch\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-7MEch\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/7MEch\/full.png\" alt=\"South Regional Highlights (Table)\" \/><\/noscript><\/div>\n<p>&nbsp;<\/p>\n<p>Then, looking at leasing data,\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/fl\/miami\/\" target=\"_blank\" rel=\"noopener\">office space in Miami<span class=\"sr-only\">(opens in new tab)<\/span><\/a>\u00a0had the highest average full-service equivalent listing rate in the region in August at a little less than $60 per square foot. Not to be outdone,\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/tx\/austin\/\" target=\"_blank\" rel=\"noopener\">office space in Austin, Texas,<span class=\"sr-only\">(opens in new tab)<\/span><\/a> asked an average of roughly $46 per square foot. It was followed by Washington, D.C. \u2014 the only other market in this regional group to see listing rates average more than $40 per square foot last month.<\/p>\n<p>Only one other market in the region also rested above the national average last month: Asking listing rates for <a href=\"https:\/\/www.commercialcafe.com\/office\/us\/ga\/atlanta\/\" target=\"_blank\" rel=\"noopener\">Atlanta office space<span class=\"sr-only\">(opens in new tab)<\/span><\/a>\u00a0averaged nearly $36.70 per square foot.<\/p>\n<p>Then, looking at vacancy in the region, Texas\u2019 Austin and Houston had the highest rates in August 2026 and were also the only ones to exceed 20% in this respect. Conversely, Miami and Tampa, Fla., had the highest rates of occupancy and were among only three Southern U.S. markets to see vacancy below the national average last month. The third was also in Florida (Orlando).<\/p>\n<p>As for construction, data showed that Texas markets carried a significant portion of the office pipeline in the Southern U.S.: In August, roughly 3 million square feet of office space was in development in Dallas and a little more than 950,000 square feet of <a href=\"https:\/\/www.commercialcafe.com\/office\/us\/tx\/houston\/\" target=\"_blank\" rel=\"noopener\">Houston office space<span class=\"sr-only\">(opens in new tab)<\/span><\/a> was under construction. Combined with the 480,000 square feet of projects in development in Austin, these Texas markets accounted for nearly half (48%) of the regional pipeline and about 14% of the national total.<\/p>\n<p>Over in Florida, Miami was the only other Southern U.S. market that we analyzed for this report with a pipeline larger than 1 million square feet of office space last month. With 2.2 million square feet of office space in development, Miami had the second-largest pipeline in the region at the close of August.<\/p>\n<h3><span style=\"color: #0bbfeb;\">Northeastern Markets<\/span><\/h3>\n<h2>Manhattan, N.Y., Leads in Office Sales &amp; Construction Pipeline<\/h2>\n<p>In August, Manhattan, N.Y., had the highest average listing rate in the region at nearly $73 per square foot. For comparison, asking rates for <a href=\"https:\/\/www.commercialcafe.com\/office\/us\/pa\/philadelphia\/\" target=\"_blank\" rel=\"noopener\">Philadelphia office space<span class=\"sr-only\">(opens in new tab)<\/span><\/a>\u00a0averaged $32.40 per square foot, making it the only Northeastern U.S. office market to ask less than the national average of $33.20 per square foot last month.<\/p>\n<p>Looking at construction, two of the four largest office markets in the Northeast each had more than 3 million square feet of new office space in development. Together, they accounted for nearly 23% of the national pipeline last month.<\/p>\n<p>True to form, the\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/ny\/manhattan\/\" target=\"_blank\" rel=\"noopener\">Manhattan, N.Y., office space<span class=\"sr-only\">(opens in new tab)<\/span><\/a>\u00a0pipeline led supply in the region as office projects in development here totaled more than 3.7 million square feet. Not far behind, construction of <a href=\"https:\/\/www.commercialcafe.com\/office\/us\/ma\/boston\/\" target=\"_blank\" rel=\"noopener\">office space in Boston<span class=\"sr-only\">(opens in new tab)<\/span><\/a> made for the second-largest total in the region last month with 3.6 million square feet in the pipeline. With that, these two Northeastern U.S. markets comprised 22.7% of the country\u2019s total pipeline of 32.36 million square feet last month.<\/p>\n<p>As one might expect, office sales data showed that transactions in Manhattan, N.Y., amounted to the largest sales total since the start of the year in both the region and the country at $5.1 billion. Meanwhile, transaction activity in Boston during the first eight months of the year totaled $1.2 billion in year-to-date office sales, marking the second-largest total in the region. Rounding out the podium, sales of\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/nj\/\" target=\"_blank\" rel=\"noopener\">New Jersey office space<span class=\"sr-only\">(opens in new tab)<\/span><\/a>\u00a0added up to $583 million since the start of the year through August.<\/p>\n<div id=\"datawrapper-vis-Sv4is\" style=\"min-height: 540px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/Sv4is\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-Sv4is\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/Sv4is\/full.png\" alt=\"Northeast Regional Highlights (Table)\" \/><\/noscript><\/div>\n<h3><span style=\"color: #0bbfeb;\">Office-Using Employment<\/span><\/h3>\n<h2>Technology Investment Drives Bump in Phoenix Employment<\/h2>\n<p>According to data from the Bureau of Labor Statistics, office-using sectors of the labor market experienced a combined loss of 24,000 jobs in August, led by the information sector. In particular, the financial activities sector lost 11,000 jobs, while the professional and business services sector gained 10,000 jobs.<\/p>\n<p>On an annual basis, national employment in office-using sectors decreased by 62,000 positions (a 0.2% Y-o-Y drop), even as total non-farm employment across the country grew by 0.4% during the same timeframe.<\/p>\n<p>At the metropolitan level, July data showed that office employment in Phoenix had increased 1.3% Y-o-Y, which placed it behind only Texas\u2019 Austin and Houston. This annual growth \u2014 the Arizona market\u2019s strongest since mid-2022 \u2014 is largely driven by gains in the information and professional and business services sectors.<\/p>\n<p>In Phoenix, recent investments \u2014 such as in semiconductor manufacturing \u2014 have had a positive effect in lifting other sectors. For example, the continued expansion of semiconductor manufacturer TSMC supports additional jobs in information technology and consulting.<\/p>\n<div id=\"datawrapper-vis-iZdSm\" style=\"min-height: 620px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/iZdSm\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-iZdSm\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/iZdSm\/full.png\" alt=\"Office Using Employment: August 2026 (Table)\" \/><\/noscript><\/div>\n<h4><span style=\"color: #0bbfeb;\">Methodology<\/span><\/h4>\n<p>This report covers office buildings that are 25,000 square feet or larger.\u00a0Listing rate and occupancy information was based on Yardi Research data.<\/p>\n<p><strong>Listing rates<\/strong>\u00a0are full-service rates or \u201cfull-service equivalent\u201d for spaces that were available as of the report period.<\/p>\n<p><strong>Vacancy<\/strong>\u00a0refers to the total square feet vacant in a market (including subleases) divided by the total square feet of office space in that market. Owner-occupied buildings are not included in vacancy calculations. For reporting purposes, A and A+\/trophy buildings were combined.<\/p>\n<p><strong>Stages of the supply pipeline:<\/strong><\/p>\n<p><strong>Planned\u00a0<\/strong>\u2014 Buildings that are currently in the process of acquiring zoning approval and permits, but have not yet begun construction.<\/p>\n<p><strong>Under Construction<\/strong>\u00a0\u2014 Buildings for which construction and excavation have begun.<\/p>\n<p><strong>Office-Using Employment<\/strong>\u00a0is defined by the Bureau of Labor Statistics as including the sectors information, financial activities, and professional and business services. Employment numbers are representative of the metropolitan statistical area and do not necessarily align exactly with CommercialCafe market boundaries.<\/p>\n<p><strong>Sales volume<\/strong>\u00a0and\u00a0<strong>price-per-square-foot<\/strong>\u00a0calculations for portfolio transactions or those with unpublished dollar values were estimated using sales comps based on sales that were similar in terms of the market and submarket; use type; location and asset ratings; sale date; and property size.<\/p>\n<p>Market boundaries in the CommercialCafe office report coincide with markets defined in the\u00a0<a href=\"https:\/\/www.commercialcafe.com\/commercial-markets\/\">CommercialCafe Markets Map<\/a>\u00a0and may differ from regional boundaries defined by other sources.<\/p>\n<h4><span style=\"color: #0bbfeb;\">Fair Use &amp; Redistribution<\/span><\/h4>\n<p>We encourage and freely grant you permission to reuse, host, or repost the research, graphics, and images presented in this article. When doing so, we kindly ask that you credit our research by linking to CommercialCafe.com or this page so that your readers can learn more about this project, the research behind it, and its methodology. For more in-depth, customized data, please contact us at <a href=\"mailto:prinfo@commercialcafe.com\">prinfo@commercialcafe.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Office loans approaching maturity add to the pressure that interest rates and low physical occupancy have been putting on office assets that have been underperforming through the flight-to-quality trend.<\/p>\n","protected":false},"author":48,"featured_media":52381,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"Loans, interest rates, and occupancy: pressure builds on office assets to increase performance and appeal.","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[42,4014,39],"tags":[],"class_list":["post-50262","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-reports","category-featured","category-office","wpautop"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>U.S. Office Market Report September 2026 | CommercialCafe<\/title>\n<meta name=\"description\" content=\"Loans maturing, interest rates, low occupancy, and more compound the pressure on office properties to increase performance and appeal.\" \/>\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.commercialcafe.com\/blog\/national-office-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"YTD Office Sales Near $43B as Key Markets Carry Bulk of Pipeline &amp; 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