According to Moody’s Analytics REIS National Office Market Trends for Q3:
The Office vacancy rate was flat in the quarter at 16.8%. In the third quarter of 2018, it was 16.7%. Overall vacancy has declined only 0.3% in the last five years.
New York City saw steady net absorption as vacancy declined 0.2% to 7.9%, still the lowest in the U.S.; the average effective rent grew 0.3% to $62.31 per square foot.
Both the national average asking rent and effective rent, which nets out landlord concessions, increased 0.6% in the third quarter. At $34.06 per square foot (asking) and $27.65 per square foot (effective), the average rents have increased 2.6% from the third quarter of 2018.
Net absorption of 4.53 million SF was lower than the previous quarter’s absorption of 4.9 million SF. However, construction was only 4.36 million SF, much lower than last quarter’s 9.47 million SF. We expect some revisions to these numbers, but they show a marked decelerating in growth. This year is expected to add 48.1 million SF of office space, just below 2018’s total of 49 million SF.