OFFICE
OFFICE INVENTORY
OFFICE RENT
$24.00
14M
$21.37
$22.00
13.5M
$20.00
13,518,693 sq/ft
$20.07
13M
$18.00
$16.00
12.5M
$14.00
12M
$12.00
$10.00
11.5M
2019
2020
2021
2022
2023
2024
2025
2019
2020
2021
2022
2023
2024
2025
Source: JLL
Source: JLL
Office rents jumped 6% in Q1 2025, reaching $21.37 per square foot compared to $20.07 per square foot the previous quarter. This marks the first increase in office rent rates since Q1 2024. Rental rates reached a high point of $22.06 per square foot in Q3 2023.
Office inventory remains steady at 13,518,693 square feet, marking the fifth consecutive quarter without change.
OFFICE VACANCY
Direct Vacancy
Sublease Vacancy
Total Vacancy
OFFICE SPACE UNDER CONSTRUCTION
16%
13.8%
12.7%
450K
14%
400K
12%
350K
10%
10.8%
11.5%
300K
8%
250K
6%
200K
150K
4%
2.2%
1.9%
100K
2%
0 sq/ft
50K
0%
2019
2020
2021
2022
2023
2024
2025
0
2019
2020
2021
2022
2023
2024
2025
Source: JLL
Source: JLL
After declining in late 2023, vacancy rates in the office sector continued to climb, reaching 13.8% in Q1 2025. This marks a 1.1% increase since Q1 2024, with both direct and sublease vacancies contributing to the rise.
No new significant office construction has been reported since mid-2023.
05 STATE OF DEVELOPMENT – DIVING DEEPER
STATE OF DEVELOPMENT – DIVING DEEPER 06
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