{"id":52376,"date":"2026-08-20T07:55:36","date_gmt":"2026-08-20T04:55:36","guid":{"rendered":"https:\/\/www.commercialcafe.com\/blog\/?p=52376"},"modified":"2026-09-17T10:06:02","modified_gmt":"2026-09-17T07:06:02","slug":"national-office-report-august-2026","status":"publish","type":"post","link":"https:\/\/www.commercialcafe.com\/blog\/national-office-report-august-2026\/","title":{"rendered":"More Office Markets See Dip in Vacancy, Pipeline Remains Modest, Medical Office Space Trends Toward Growth"},"content":{"rendered":"<p><span style=\"color: #0bbfeb;\"><strong>Key Takeaways:<\/strong><\/span><\/p>\n<ul>\n<li>In July, the\u00a0<strong>national office\u00a0vacancy rate<em>\u00a0<\/em>was 17.7%<\/strong>\u00a0following a decrease of 130 basis points (bps) year-over-year (Y-o-Y).<\/li>\n<li>The\u00a0<strong>national office\u00a0listing rate\u00a0averaged $33.58 per square foot<\/strong>\u00a0last month,\u00a0which was 2.6% higher than values recorded in July 2025.<\/li>\n<li>Nationally, the office supply pipeline had\u00a0<strong>roughly 29.5 million square feet of office space under construction\u00a0<\/strong>last month.<\/li>\n<li>With more than $5 billion in deals closed since the start of the year,\u00a0<strong>Manhattan, N.Y., topped the list for sales <\/strong>last month. It was followed by Dallas ($2.9 billion), California\u2019s Bay Area ($2.62 billion), and San Francisco ($2.6 billion).<\/li>\n<li>Among the seven large U.S. office markets where vacancy was below the national average,\u00a0<strong>Manhattan, N.Y., and Miami averaged the lowest vacancy rates<\/strong>\u00a0in July.<\/li>\n<li>In July, <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>Boston; Manhattan, N.Y.; and Dallas had the most active construction pipelines. <\/strong>They also remained the only markets where more than 2 million square feet of new office space was in development. In total, these three accounted for nearly 31% of the national pipeline total in July.<\/li>\n<\/ul>\n<h3><span style=\"color: #0bbfeb;\">Trends &amp; Industry News<\/span><\/h3>\n<h2>Medical Office Space Shines Through Office Sector Struggles<\/h2>\n<p>While traditional office-using sectors are more vulnerable to a slowing economy, health care-associated property is generally shielded by the essential nature of its intended use. Because many health care services still require on-site care and the demand for them is increasing, medical office space has established itself as a strong segment of the office market.<\/p>\n<p>Supported by favorable, long-term health care trends, the medical office sector remains well-positioned for future growth, whereas traditional office space navigates widespread restructuring and consolidation in the face of weak demand.<\/p>\n<blockquote><p><span data-olk-copy-source=\"MessageBody\">\u201cUnlike traditional office in the current market conditions, medical office has a few structured safeguards in place, such as the need for physical occupancy, an aging demographic, and the historical trend of occupiers being more reluctant to relocate.\u201d<\/span><\/p>\n<p><strong>Peter Kolaczynski, Director, Yardi Research<\/strong><\/p><\/blockquote>\n<p>Although general office development declined, medical office properties retained more value, which supported continued development. Accordingly, medical office space delivered in 2025 added up to a little more than 7 million square feet, which accounted for nearly 17% of total office completions last year.<\/p>\n<p>Moreover, as general office starts have trended downward since 2020, the supply pipeline has seen a significant shift to medical office use. Specifically, medical office starts accounted for 11% of the office pipeline in 2020 and went up to 26.2% in 2025.<\/p>\n<p>Granted, starts have slowed overall, but data has shown a clear difference between medical office space and traditional: While annual general office starts fell 73% throughout the course of the decade so far, medical office starts fell only 9.5%.<\/p>\n<p>More precisely, looking at sale prices over time, of the nearly 500 medical office properties sold since 2024 with two sale prices available for comparison, 67% appreciated in value. For comparison, that share was just 52% for general office.<\/p>\n<p>Further confirming demographic trends as a long-term favorable factor, data showed that this was particularly true in metropolitan areas with aging populations. For instance, in Tampa, Fla., 90% of medical office property transactions involved properties that appreciated in value, compared to 71% for general office. Fort Lauderdale, Fla., (89% medical, 76% general) and Phoenix (89% medical, 65% general) were close behind.<\/p>\n<h3><span style=\"color: #0bbfeb;\">Listing Rates &amp; Vacancy<\/span><\/h3>\n<h2>Dallas Office Vacancy Continues Dip Below 20%<\/h2>\n<p>The national average full-service equivalent listing rate for office space was $33.58 per square foot last month after an increase of 2.6% Y-o-Y. Similarly, the national vacancy rate dropped 130 bps compared to the previous year to rest at 17.7% at the close of July.<\/p>\n<p>Notably, of the 25 largest markets that we analyzed, 19 saw decreases in their respective vacancy rates when compared to July 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>In May of this year, Dallas was among them. Since June, however, the Texas market has seen vacancy dip below that threshold to reach 18.7% vacancy last month. This marked the first time that vacancy here dropped below 20% since 2023, according to Yardi Matrix research data.<\/p>\n<p>In this case, corporate-friendly policies have supported robust office employment in the metro, and the relatively affordable living (average multifamily rents in the area are below the national average) has contributed to a large employment pool.<\/p>\n<p>And, with companies such as KFC, Geico, and Goldman Sachs investing heavily in the Dallas metropolitan area, the office sector here looks on track for a sustained recovery in the foreseeable future.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-6wRcQ\" style=\"min-height: 835px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/6wRcQ\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-6wRcQ\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/6wRcQ\/full.png\" alt=\"Top Listings by Metro Area: July 2026 (Table)\" \/><\/noscript><\/div>\n<h3><span style=\"color: #0bbfeb;\">Transactions<\/span><\/h3>\n<h2>San Francisco Office Sale Prices Rising<\/h2>\n<p>In July, year-to-date office sales added up to more than $36 billion across 1,576 transactions, while sale prices averaged $198 per square foot. Additionally, a total of 18 of the top 25 metros we analyzed for this report saw overall sales in excess of $500 million during the first seven months of 2026. Among them, 10 markets saw more than $1 billion each in year-to-date sales.<\/p>\n<p>First up, sale prices in San Francisco increased to $543 per square foot last month following three years of historical lows. This made it the second-highest average sale price per square foot last month after Manhattan, N.Y.\u2019s $575. Albeit a step in the desired direction, it was still roughly half of the peak of 2020, when office properties in San Francisco traded for an average of $1,060 per square foot. Thus, the ongoing office sector struggle to retain property value in central business districts may continue to dampen the rise of sale prices for a while longer.<\/p>\n<p>As noted in our <a href=\"https:\/\/www.commercialcafe.com\/blog\/national-office-report-june-2026\/\" target=\"_blank\" rel=\"noopener\">June 2026 analysis of the national office sector<span class=\"sr-only\">(opens in new tab)<\/span><\/a>, properties that lack the flexibility required to navigate major shifts in demand \u2014 such as the persistent flight-to-quality trends that consolidate market demand into a limited pool of properties \u2014 have been struggling to retain value. To that end, an analysis of sales data showed that, from 2024 through May of this year, 73% of central business district properties that traded sold at a discount. At the same time, discount rates reached 48% for urban asset transactions and 42% for suburban properties.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-Idjb5\" style=\"min-height: 520px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/Idjb5\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-Idjb5\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/Idjb5\/full.png\" alt=\"2026 Year-To-Date Sales (Millions) (Table)\" \/><\/noscript><\/div>\n<h3><span style=\"color: #0bbfeb;\">Supply<\/span><\/h3>\n<h2>Miami Tops Office Construction as Percent of Stock<\/h2>\n<p>As of July, nearly 29.5 million square feet of office space was under construction in the U.S. markets we tracked for this report. According to Yardi research data, this represented roughly 0.4% of stock. Then, at the close of July, developers had delivered 13.1 million square feet of office space.<\/p>\n<p>Looking at individual market pipelines, three of the 25 markets we analyzed had more than 2 million square feet (each) in development last month \u2014 Manhattan, N.Y.; Boston; and Dallas. In fourth place was Miami, where 1.34 million square feet was in development at the close of July. It\u2019s worth noting here that this represents 1.8% of stock currently under construction, which was the largest percentage of existing inventory among the markets we analyzed for this report. Then, including projects in the planned stages brings the development share to 6% of stock.<\/p>\n<p>One of the best-performing metros in the U.S., Miami has consistently been on the lower end of the list for vacancy rates \u2014 currently at 11%. Plus, as demand for modern, high-quality office space is poised to increase, investor confidence remains strong enough to supporting continued development activity.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-hnBaX\" style=\"min-height: 520px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/hnBaX\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-hnBaX\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/hnBaX\/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>LA Maintains Lowest Office Vacancy in Region, Leads New Construction<\/h2>\n<p>Vacancy rates were above the national average of 17.7% in July 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 (16.9%), all markets we analyzed in this region averaged vacancy rates at or higher than 19% 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 July. Next, Seattle was second with vacancy averaging 24.9% last month.<\/p>\n<p>San Francisco also topped the regional list for listing rates: Asking rates here averaged a little more than $63 per square foot in July, which was almost double the national average of $33.58.<\/p>\n<p>Nearby, Bay Area office space remained the second-priciest in the region last month with asking rates averaging $56.27 per square foot \u2014 the only other Western U.S. market on our list where average rates surpassed $50 per square foot last month.<\/p>\n<p>Not far behind, 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 still the only other markets in the region to do so \u2014 and closed out the standout block of California markets ranking at the top on the list for asking rates.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-akq9O\" style=\"min-height: 600px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/akq9O\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-akq9O\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/akq9O\/full.png\" alt=\"West Regional Highlights (Table)\" \/><\/noscript><\/div>\n<p>&nbsp;<\/p>\n<p>Otherwise, Portland, Ore.; Phoenix; and Denver were the only large markets in the Western U.S. where office asking rates were below the national average in July, each averaging close to or less than $30 per square foot.<\/p>\n<p>Meanwhile, when looking at office sales in the region, data showed that northern California markets held a comfortable lead. Here, the Bay Area \u2014 which saw nearly $2.62 billion in sales close during the first seven months of the year \u2014 took the top spot, followed by the neighboring San Francisco market, where year-to-date transactions nearly reached $2.6 billion. At the close of July, 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 ($1.3 billion). It was followed by sales of\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/az\/phoenix\/\" target=\"_blank\" rel=\"noopener\">Phoenix office space<span class=\"sr-only\">(opens in new tab)<\/span><\/a>, which added up to $791 million since the start of the year through July. San Diego and Denver were the only other Western U.S. markets to see office sales exceed $500 million during the first seven months of the year.<\/p>\n<p>Of course, high-profile assets\u00a0in gateway markets continued to command top-tier prices.\u00a0Namely, San Francisco\u00a0office sales closed through July averaged $543 per square foot, which was the second-highest nationwide last month, behind Manhattan, N.Y.<\/p>\n<p>California markets also led the region in terms of development in July:\u00a0Los Angeles had a little more than 1.33 million square feet under construction, followed closely by San Diego, where 1.3 million square feet was\u00a0under development. Together, they accounted for more than 54% of the roughly 4.8 million square feet currently in the pipeline across the largest markets in the region.<\/p>\n<h3><span style=\"color: #0bbfeb;\">Midwestern Markets<\/span><\/h3>\n<h2>Chicago Holds Lowest Vacancy in Region While Topping Office Asking Rates<\/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 July, 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 $21.11 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 $27.46 per square foot.<\/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 July with asking rates here averaging $28.38 per square foot. At the same time, occupancy levels in the Illinois market last month also kept vacancy at 17.8% to make it the closest in the region to the national average of 17.7% last month.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-shuBm\" style=\"min-height: 520px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/shuBm\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-shuBm\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/shuBm\/full.png\" alt=\"Midwest Regional Highlights (Table)\" \/><\/noscript><\/div>\n<p>&nbsp;<\/p>\n<p>Likewise, the highest regional office sales total so far this year was also in Chicago: By the end of July, the largest office market in the Midwest had seen more than $1.2 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 $452 million through July 2026.<\/p>\n<p>Other than those, development in the region remained quite slow last month with a combined total of a little more than 1.43 million square feet of office space under construction in July across the Midwestern U.S. markets we analyzed.<\/p>\n<h3><span style=\"color: #0bbfeb;\">Southern Markets<\/span><\/h3>\n<h2>Miami Leads Asking Rates, Holds Lowest Office Vacancy<\/h2>\n<p>In the South, Miami; Austin, Texas; and Washington, D.C. remained the region\u2019s top three markets for asking rates and were the only Southern U.S. markets to see full-service equivalent listing rates averaging more than $40 per square foot in July.<\/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. In fact, it was one of only two markets in this group to average less than $30 per square foot last month, the other one being Houston.<\/p>\n<p>In this case, a look at year-to-date office sales showed that eight of the 10 Southern U.S. markets we analyzed for this report recorded totals higher than $500 million through last month. Most notably, five of them saw year-to-date sales surpass the $1 billion mark: Dallas had the highest year-to-date sales total as office transactions here amounted to nearly $2.9 billion last month. Next, sales of\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>\u00a0added up to more than $1.7 billion through July. The third-highest year-to-date sales total in the South was in Houston ($1.5 billion). It was followed by Austin, Texas, ($1.4 billion) and Miami ($1 billion).<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-lX7xr\" style=\"min-height: 680px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/lX7xr\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-lX7xr\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/lX7xr\/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 July at a little more 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 nearly $47 per square foot, 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\">office space in Atlanta<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 July 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 the three Southern U.S. markets to see vacancy below the national average last month. The third was Orlando, Fla.<\/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 July, roughly 2.8 million square feet of office space was in development in Dallas, and a little more than 1.2 million square feet was under construction in Austin \u2014 the only markets in the region to each claim more than 1 million square feet in development last month. Combined with the 820,000 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> under construction, Texas markets accounted for more than half of the regional pipeline and about 16% of the national total.<\/p>\n<p>Among the Southern U.S. markets we analyzed for this report, Miami was the only other one to have a pipeline larger than 1 million square feet of office space last month.<\/p>\n<h3><span style=\"color: #0bbfeb;\">Northeastern Markets<\/span><\/h3>\n<h2>Boston &amp; Manhattan, N.Y., Lead Construction Pipeline<\/h2>\n<p>In July, Manhattan, N.Y., had the highest average listing rate in the region at nearly $72 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 just short of $32 per square foot, making it the only Northeastern U.S. office market to ask less than the national average of $33.67 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 2 million square feet of new office space in development. Together, they accounted for more than 20% of the national pipeline last month.<\/p>\n<p>Boston led supply in the region as office projects in development here totaled 3.4 million square feet. Then, 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 was the second-largest in the region last month with 2.9 million square feet under construction. With that, these two Northeastern U.S. markets accounted for about 21% of the country\u2019s total pipeline of approximately 29.52 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 nearly $5.2 billion. Meanwhile, transaction activity in Boston during the first seven months of the year totaled $693 million in year-to-date office sales, marking the second-largest total in the region. Next, 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 $549 million since the start of the year through July.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-9hRn9\" style=\"min-height: 540px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/9hRn9\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-9hRn9\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/9hRn9\/full.png\" alt=\"Northeast Regional Highlights (Table)\" \/><\/noscript><\/div>\n<h3><span style=\"color: #0bbfeb;\">Office-Using Employment<\/span><\/h3>\n<h2>Portland, Ore., Sees Largest Y-o-Y Job Losses Among Top U.S. Markets<\/h2>\n<p>According to data from the Bureau of Labor Statistics, office-using sectors of the labor market experienced a combined gain of 15,000 jobs in July, led by the professional and business services sector. At the same time, the information sector gained 11,000 jobs, while employment in the financial activities sector dropped 14,000 jobs.<\/p>\n<p>On an annual basis, national employment in office-using sectors decreased by 80,000 positions (a 0.2% Y-o-Y drop), even as total non-farm employment across the country grew by 0.2% during the same timeframe.<\/p>\n<p>At the metropolitan level, data showed Portland, Ore., feeling the weight of job losses mounting. Office employment here had dropped 3.8% Y-o-Y by the start of July, which was the largest decline among top metros. With the area experiencing an outflow of both businesses and workers in recent years, all three office employment sectors have been feeling the loss. Notably, it was the information sector that took the biggest hit with a 7.2% drop from the previous year.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-SDICf\" style=\"min-height: 620px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/SDICf\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-SDICf\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/SDICf\/full.png\" alt=\"Office Using Employment: July 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\u00a0<a href=\"mailto:prinfo@commercialcafe.com\">prinfo@commercialcafe.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supported by favorable, long-term health care trends, such as the aging demographic and an increase in healthcare services demand, the medical office sector remains well-positioned for future growth, whereas traditional office space navigates widespread restructuring and consolidation in the face of weak 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