As the U.S. office sector continues to navigate the complex post-2020 landscape, it evolves under the influence of shifting economic winds, changing work trends, and the need to refresh a significant portion of the national office stock. That said, how have the large office markets fared in 2024?
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In order to keep up with evolution in the industry, we set out to capture key performance trends across the 100 largest office markets in the U.S. in a series of quarterly ranking reports, which compare and score markets across several metric categories: vacancy, pipeline, average asking rents, the evolution of the coworking space scene, upcoming loan maturities, and 12-month shifts in online searches for both traditional and flexible office space.
For the Q3 2024 office markets ranking report, we based our analysis on commercial real estate data from CommercialEdge, CoworkingCafe, and Yardi Matrix, as well as Google search trends. For a fairer comparison, the report presents the data in two groups: top markets larger than 100 million square feet of office space and top office markets smaller than 100 million square feet.
Here are some of the key highlights:
Phoenix earned the 9th-highest ranking score among the country’s larger markets in this year’s third quarter, receiving a total of 45.6 points.
- Phoenix earned the 2nd-best score for its decrease in vacancy rate compared to the previous quarter.
- The Arizona market’s best-performing metrics also included loan maturities (the 4th-lowest percentage of loans maturing this year), and the growth of the coworking segment in the local office market (5th-best score).
Overall, Boston bagged top scores for vacancy, pipeline, and asking rates and ranked #1 in Q3 2024 among office markets larger than 100 million square feet. San Diego and Orange County completed the podium.
You can find more information about this topic in our full study: https://www.commercialcafe.com/blog/national-office-coworking-report/
