According to data from Moody’s Analytics, an average of 19.6% of office space in major cities across the United States remained unleased as of the fourth quarter of 2023. This is a slight increase from the previous year and marks the highest vacancy rate since at least 1979 when Moody’s began tracking this data.
The current issue with office vacancies can be attributed in part to the rise in remote working, but it also has roots in past downturns during the ’80s and ’90s due to overbuilding. Mary Ann Tighe, chief executive for CBRE’s New York Tri-State region, stated that most vacant spaces are found in buildings constructed between the 1950s and ’80s.
Similar to trends seen during earlier downturn periods such as those experienced during early ’90s, Southern cities have been hit hardest by high vacancy rates. Currently topping this list are Houston, Dallas and Austin according to Moody’s data. In comparison back then Palm Beach and Fort Lauderdale along with San Antonio held these positions while today they rank among some of lowest-vacancy areas like West Palm Beach or Fort Lauderdale.
This record-high level for U.S.office vacancies was reported by The Wall Street Journal without mentioning “Connect” or any specific location within LA or Texas regions on January XXth .
