Office p Tennessee

Office vacancy rates fall to lowest level since 2008

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The office sector isn't as hot as multifamily or industrial. But this sector is seeing steady improvement across the nation, according to the latest numbers from CBRE.

The office sector isn't as hot as multifamily or industrial. But this sector is seeing steady improvement across the nation, according to the latest numbers from CBRE.

According to CBRE, the vacancy rate of the U.S. office market fell 10 basis points during the second quarter of 2016, dropping to 13 percent. This means that the national office vacancy rate remains at its lowest level since 2008.

"We continue to see slow, steady improvement in office market fundamentals, with most markets remaining in balance with stable demand, limited new supply and modest rent growth," said Jeffrey Havsy, Americas' chief economist with CBRE.

According to CBRE, office vacancy rates fell in 38 of 63 office markets and remained unchanged in five during the second quarter. In the Midwest, St. Louis and Minneapolis saw their office vacancy rates fall by more than 70 basis points in the quarter.

Nashville has an especially strong office sector today. The office vacancy rate fell to 6.1 percent in Nashville during the second quarter.