Vacancy rates across the office real estate sector in the U.S. increased in the first 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 *** 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 has 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.

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 8.9 percent in 2013 and it was projected to decrease to 7.4 percent in 2019. For more recent data on office vacancy rates in New York click here.

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 17.4 percent in the United States, 10.5 percent in Europe, and 25.9 percent in Greater China. In the Asia Pacific region and in Canada, vacancies are expected to reach their highest point in 2022.

The vacancy rate of office real estate in Latin America increased across most of the leading markets between the second half of 2019 and second half of 2022, except for Bogota, Monterrey, and Rio de Janeiro. Rio de Janeiro had the highest vacancy rate of 33.7 percent in 2022, despite decreasing from 2019. In Buenos Aires, which was the best positioned market in 2019, the vacancy rate rose from 6.7 percent to 16.4 percent.

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 2.4 percent in 2019, the lowest in the world.

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 6.3 percent 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 18.3 percent, up from 10.9 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.

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.

As of 2019, districts with the highest percentage of office real estate vacancies in St. Petersburg were located in the city center. Namely, in Admiralteyskiy and Vasileostrovskiy districts vacancy rates of ten and eight percent were reported over the observed period, respectively.

Shanghai grade A office real estate had a vacancy rate of 13.8 percent in the third quarter of 2023. The vacancy rate was significantly lower than the level before 2021. 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 14.2 percent in 2013 and it was projected to decrease to 14.1 percent in 2019.

This statistic presents the office vacancy rate in Shanghai from 2006 to 2013 and a forecast thereof until 2019. The office vacancy rate in Shanghai amounted to 4.3 percent in 2013 and it was projected to increase to 5.1 percent in 2019.

The average office vacancy rate in San Francisco has increased dramatically since 2019. From about 8.8 percent in that year, the share of vacant office space reached 19.2 percent in 2023. In the third quarter of 2024, the North Financial District had the most vacant office space space.

The vacancy rate for office real estate in Belgrade, Serbia, has decreased overall from 4th quarter 2013 to 4th quarter 2019. It can be seen that between the period of Q4 2013 and Q4 2015 the vacancy rate decreased by 4.5 percent, to a total of five percent in the fourth quarter of 2015. As of the fourth quarter of 2019, the vacancy rate for office real estate in Belgrade, Serbia was three percent.

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 Q4 2013 and Q4 2015 the vacancy rate decreased by 5.5 percent, to a total of 8.4 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 12.8 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 4.9 percent in 2013 and it was projected to decrease to 4.5 percent in 2019.

This statistic illustrates the vacancy rate for office real estate in Warsaw, Poland, from 2013 to 2019. It can be seen that between the 2015 and 2016 the vacancy rate increased by 2.5 percent, to a total of 15 percent as of 2016. As of 2019 the vacancy rate for office real estate in Warsaw, Poland amounted to 7.8 percent.

The vacancy rate for office real estate in Tallinn, Estonia, has fluctuated from 4th quarter 2013 to 4th quarter 2019. It can be seen that between 2014 and 2016 the vacancy rate increased by four percent, to a total of 9.5 percent as of the fourth quarter of 2016. As of the fourth quarter 2019, the vacancy rate for office real estate in Tallinn, Estonia was 5.5 percent.

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 Q4 2013 and Q4 2015 the vacancy rate decreased by 4.1 percent, to a total of 12.6 percent in the fourth quarter of 2015. Since then the vacancy rate for office real estate in Manchester fluctuated to 15 percent as of the fourth quarter of 2019.

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 12.4 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.