Vacancy rates across the office real estate sector in the U.S. increased in the second quarter of 2025. This was in line with a general trend of rising vacancies that started in 2020 during the COVID-19 pandemic. In the second quarter of 2025, about **** percent of office space across the country was vacant. In some major U.S. markets, vacancies exceeded ***percent. With a considerable part of the workforce working from home or following a hybrid working model, businesses are cautious when it comes to upscaling or renewing leases. Workplaces may never be the same again The COVID-19 pandemic has changed the way that companies operate, with working from home becoming the new normal for many U.S. employees. The function of the office has evolved from the primary workplace to a space where employees collaborate, exchange ideas, and socialize. That has shifted occupiers’ attention toward spaces with modern designs that can accommodate the office of the future. Many businesses used the pandemic time to revisit their office guidelines, remodel, or do a full or partial fit-out. With so much focus on quality, older buildings with poorer design or energy performance are likely to suffer lower demand, resulting in a two-speed market. What do higher vacancy rates mean for investors? Simply put, if landlords do not have tenants, their income stream is disrupted, and they cannot service their debts. April 2023 data shows that several U.S. metros had a significantly high share of distressed office real estate debt. In Charlotte-Gastonia-Concord, NC-SC, more than one-third of the commercial mortgage-backed securities for offices were delinquent, in special servicing, or a combination of both. As of March 2025, offices had the highest delinquency rate in the commercial property sector.

The coronavirus (COVID-19) pandemic has led to major cyclical and structural changes in the office real estate sector. As a result of the economic downturn and rising unemployment, along with an increasing share of businesses that introduce the option to work from home, office real estate demand in certain regions worldwide is forecast see a short term decline. In 2022, office real estate vacancy rates are forecast to peak at **** percent in the United States, **** percent in Europe, and **** percent in Greater China. In the Asia Pacific region and in Canada, vacancies are expected to reach their highest point in 2022.

This statistic presents the office vacancy rate in New York from 2006 to 2013 and a forecast thereof until 2019. The office vacancy rate in New York amounted to *** percent in 2013 and it was projected to decrease to *** percent in 2019. For more recent data on office vacancy rates in New York click here.

This statistic shows the forecasted vacancy rates of office space in selected cities in the Americas in 2019. The average vacancy rate of office space in Vancouver, Canada is forecast to be *** percent in 2019.

The vacancy rate in the office real estate market in Central London, England, increased between 2019 and 2023. The West End was the area with the lowest share of vacant office real estate in the fourth quarter of 2023, at *** percent. That was *** percentage points higher than in 2019.

The vacancy rate of downtown office units in Canada has risen since 2019, reflecting the drop in leasing activity due to the coronavirus (COVID-19) pandemic. In 2023, the share of vacant office real estate reached **** percent, up from **** percent in 2019. According to the forecast, this trend will continue in 2024. Among Canada's major office markets, Vancouver and Ottawa had some of the lowest vacancy rates.

This statistic shows the forecasted vacancy rates of office space in selected cities worldwide in 2019. The average vacancy rate of office space in Sydney, Australia is forecast to be *** percent in 2019, the lowest in the world.

Shanghai grade A office real estate had a vacancy rate of **** percent in the second quarter of 2025. The vacancy rate was significantly higher than the level before the COVID-19 pandemic. Shanghai has one of the most competetive office real estate markets in China.

This statistic presents the office vacancy rate in Houston from 2006 to 2013 and a forecast thereof until 2019. The office vacancy rate in Houston amounted to **** percent in 2013 and it was projected to decrease to **** percent in 2019.

The average office vacancy rate in San Francisco has increased dramatically since 2019. From about *** percent in that year, the share of vacant office space reached **** percent in 2023. In the third quarter of 2024, the North Financial District had the most vacant office space space.

This statistic displays the office vacancy rate in Paris from 2006 to 2013 and a forecast thereof until 2019. The office vacancy rate in Paris amounted to *** percent in 2013 and it was estimated to decrease to *** percent by 2019.

The vacancy rate of office real estate in the 11 Latin American markets ranked ranged between *** and **** percent in the second half of 2024. Rio de Janeiro had the highest vacancy rate, followed by Panama City and Mexico City. Conversely, Bogota had the lowest office vacancy rate.

In the first quarter of 2025, office availability rates in the UK were the lowest in Birmingham, at **** percent. Other cities such as Manchester and Bristol had higher vacancy rates. England's busiest office market, London, had a vacancy rate exceeding ** percent in 2024.The vacancy rate is the percentage of available office rental units that are vacant or unoccupied during a given time. High vacancy rates in a city can mean that supply is outweighing demand, or that the quality of particular properties available not meeting the desired demands of the rental market. After the COVID-19 outbreak, demand for offices has declined, leading to increased vacancies across most markets.

The vacancy rate for office real estate in Birmingham, England, has decreased overall in year-on-year change from 4th quarter 2013 to 4th quarter 2019. It can be seen that between the period of ** 2013 and ** 2015 the vacancy rate decreased by *** percent, to a total of *** percent in the fourth quarter of 2015. As of the fourth quarter of 2019, the vacancy rate for office real estate in Birmingham, England was **** percent.

This statistic presents the office vacancy rate in Hong Kong from 2006 to 2013 and a forecast thereof until 2019. The office vacancy rate in Hong Kong amounted to *** percent in 2013 and it was projected to decrease to *** percent in 2019.

The vacancy rate in the office real estate sector in Rome amounted to **** percent in the fourth quarter of 2020. When comparing the market's performance in 2019 and 2020, it can be seen that the vacancy rate increased by nearly *** percent. The increase in vacancy rates was *** of the many effects that the coronavirus (COVID-19) pandemic had on the real estate market.

The vacancy rate for office real estate in Manchester, England, has decreased overall with fluctiation from 4th quarter 2013 to 4th quarter 2019. It can be seen that between the period of ** 2013 and ** 2015 the vacancy rate decreased by *** percent, to a total of **** percent in the fourth quarter of 2015. Since then the vacancy rate for office real estate in Manchester fluctuated to ** percent as of the fourth quarter of 2019.

The vacancy rate for office real estate in Geneva, Switzerland, has increased from 4th quarter 2013 to 4th quarter 2019. It can be seen that between the period 2014 and 2019 the vacancy rate increased overall by *** percent, to a total of * percent in the fourth quarter of 2019. Despite this growth in the rate of vacant office space in Geneva, compared to the rest of Europe this was still a low vacancy rate.

The vacancy rate of office real estate in Paris, France, increased for the fifth year in a row in 2024. In the fourth quarter, about **** percent of office space was vacant, more than double the vacancy rate in 2019. In Europe, some of the markets with the lowest share of vacant space were Vienna, Luxembourg, and Hamburg.

This statistic shows the forecasted growth in rental rates of office space in selected cities in the Americas between 2017 and 2019. The average rents of office space in Toronto, Canada are forecast to grow by *** percent in that period.