The U.S. office sales market continues to face a general slowdown, with just under $33 billion in assets exchanged last year at an average sale price of nearly $200 per square foot, according to a new report by CommercialEdge.
Charlotte faced similar challenges to the rest of the nation, including rising interest rates and a slower demand for premium office spaces. Despite these challenges, the Queen City saw the 8th highest increase in commercial rates over the past 12 months at 6.5%, just trailing Atlanta’s 6.7%.
| National | $32.79 | 3.3% | 19.4% | 160 bps | ||
|---|---|---|---|---|---|---|
| Orlando | $28.16 | 17.7% | 16.1% | -40 bps | Capital Plaza Two | $33.00 |
| Boston | $53.35 | 17.0% | 16.8% | 650 bps | 137 Newbury Street | $96.17 |
| Miami | $52.84 | 14.9% | 14.4% | -10 bps | 701 Brickell | $140.00 |
| Austin | $46.75 | 11.6% | 27.7% | 710 bps | Indeed Tower | $84.21 |
| Dallas | $30.52 | 11.1% | 23.0% | 350 bps | McKinney & Olive | $86.31 |
| San Francisco | $69.14 | 9.8% | 27.7% | 360 bps | Sand Hill Commons | $204.00 |
| Atlanta | $33.34 | 6.7% | 17.8% | 80 bps | 1180 Peachtree | $63.00 |
| Charlotte | $33.85 | 6.5% | 16.4% | 70 bps | Morehead Place | $46.00 |
| Tampa | $29.46 | 4.2% | 14.5% | 30 bps | Bayshore Place | $52.00 |
| Philadelphia | $32.73 | 2.4% | 18.9% | 510 bps | One Liberty Place | $57.71 |
| Nashville | $30.98 | 2.3% | 17.5% | 140 bps | Three Thirty Three | $44.88 |
| Washington DC | $41.41 | 2.2% | 17.7% | 200 bps | 500 8th Street NW | $79.58 |
| Denver | $31.37 | 2.2% | 24.6% | 260 bps | 200 Clayton Street | $73.00 |
| Phoenix | $28.23 | 1.7% | 18.4% | -60 bps | Camelback Collective | $52.50 |
Across the nation, office space under construction reached 60.8 million square feet, with 43.9 million square feet completed through October. Boston led in office development with 10.7 million square feet underway, accounting for 4.3% of its existing stock.
The average U.S. office listing rate stood at $32.79 per square foot, up 3.3% year-over-year, with San Francisco becoming the most expensive market at $69.14 per square foot. Meanwhile, Detroit had the lowest asking rents among leading office markets, at $21.46 per square foot.
