February Office Market Stats: National Listing Rate at $33.41 per Square Foot, Vacancy Holds at 19.7%
The latest U.S. office report from CommercialEdge highlights strong liquidity inflows, stabilizing vacancies in many cities and a slight uptick in rents.
Specifically, the national average full-service equivalent listing rate for office space hit $33.41 per square foot in February 2025. Although that’s up just $0.03 from January, it reflects a 5.7% jump compared to last year.
Nationally, vacancies stayed at 19.7%, though that number is 180 basis points (bps) higher than 12 months ago. Southern cities remain the tightest markets: Charlotte, N.C., boasts the lowest vacancy rate at 15.5% with Miami close behind at 15.7% and Tampa, Fla., at 15.8%. Yet, even these markets saw increases throughout the last 12 months. Miami’s rate climbed 360 bps, Tampa’s rose 260 and Charlotte’s edged up 150.
Conversely, tech-centric markets are still under pressure. In this case, San Francisco leads with a 27.8% vacancy rate. It’s followed by Austin, Texas, at 27.4% and the Bay Area at 26.2%. These markets saw big yearly spikes with San Francisco up 389 bps, Austin rising 530 and the Bay Area increasing by 550.
Meanwhile, Manhattan, N.Y., tops the rent chart at $68.93 per square foot, even after a 3.6% drop from a year ago. San Francisco comes in next at $63.63 per square foot (up 4%), while Miami’s $55.38 per square foot reflects a 12% increase. At the lower end, Detroit sits at $21.45 per square foot, paired with a steep, 24.6% vacancy rate.
Boston Leads With 6.55 Million Square Feet Under Construction, But Pipeline Halves
Office construction has slowed significantly with just 48.6 million square feet underway across all major markets — only 0.7% of total stock. In this metric, Boston leads with 6.55 million square feet, though that’s half of last year’s pace. Austin, Texas, follows with 3.56 million square feet and San Francisco has 3.22 million square feet in progress.
According to CommercialEdge’s report, increasing office vacancies, an unpredictable economic environment, and the widespread adoption of remote and hybrid work models means that the desire to construct new office spaces has, at least for now: “all but dried up. Construction starts totaled just 11.3 million square feet last year, and a significant rebound is not expected anytime soon.”
Manhattan Dominates Sales With $1.84 Billion, Chicago Sees Steep Discounts
Office sales are gaining momentum with $7 billion in transactions in the first two months of 2025 — up sharply from $77 million a year ago. Here again, Manhattan, N.Y., dominates with $1.84 billion, while Chicago trails at $561 million. That said, discounts are common. For example, in Chicago, the 40-story tower at 200 S. Wacker sold for $68 million in January — a nearly 70% drop from its 2013 value. Average sales prices per square foot vary widely, with the three priciest markets being San Diego at $662, Manhattan at $450, and San Francisco at $282.
For more information and a complete breakdown of the data, check out CommercialEdge’s original report.