According to Yardi, coworking spaces continued to expand across the U.S., with 7,814 locations now covering 140.1 million square feet, reflecting 25% year-over-year growth in inventory. The Southeast led with 1,960 spaces (up 24.2%), followed by the Midwest (up 27.7%), West (up 16.7%), and Northeast (up 17.5%).
Other key highlights:
- The national vacancy rate stood at 19.7% in February, reflecting a 180-basis-point increase Y-o-Y
- The national average listing rate climbed to $33.41/ sq. ft., up 5.7% Y-o-Y
- Nationally, there were 48.6M sq. ft. of office space under construction (0.7% of stock), with planned projects bringing the total to 2.6% of the total stock
- National office sales totaled $7 billion through the first two months of 2025, with properties trading at an average of $177/ sq. ft.
Western office markets continued to record some of the highest vacancy rates in the nation in February. San Francisco remained the most distressed market in the country with a vacancy rate of 27.8%, reflecting a 380-basis-point year-over-year increase. The Bay Area (26.2%), Seattle (25.9%) and Denver (25%) also continued to rank among the five U.S. markets with the highest office vacancy rates.
Denver highlights:
- Office sales reached $323 million after the first two months of 2025
- Properties traded at an average of $144 per square foot, below the national rate of $177 per square foot
- In-place rents also stood below the $33.41 national rate, more precisely, at 30.98, up 1.3% Y-o-Y
- The office vacancy rate reached 25.0% in February 2025, reflecting a 290-basis-point increase year-over-year, above the national average of 19.7%
- Denver’s office construction pipeline totaled 560,000 square feet in February 2025, representing 0.3% of the market’s total stock. This marks a significant decline from February 2024, when the pipeline stood at 2.2 million square feet
- The highest rental rate was $73.00 per square foot at 200 Clayton Street, in Cherry Creek.
Click here to read the full report.
