Reis: Office Vacancy Rate declined in Q4 to 15.7%

Reis released their Q4 2016 Office Vacancy survey this morning. Reis reported that the office vacancy rate declined to 15.7% in Q4, down from 15.9% in Q3. This is down from 16.2% in Q4 2015, and down from the cycle peak of 17.6%.

From Reis Economist Barbara Denham:

The office market saw stronger demand in the fourth quarter than in the previous three as net absorption (increase in occupancy) exceeded new supply by the widest margin since before the recession. Still, office rent growth decelerated in the quarter to 0.3%. Office rents have decelerated all year.

The national vacancy rate declined to 15.7% in the fourth quarter of 2016 from 15.9% in the third quarter and 16.2% at year-end 2015. ...

Click on graph for larger image.

This graph shows the office vacancy rate starting in 1980 (prior to 1999 the data is annual).

Reis reported the vacancy rate was at 15.7% in Q4.  The office vacancy rate is at the lowest level since early 2009, but remains elevated.

Office vacancy data courtesy of Reis.