➤ Key Highlights
Hybrid work is now the standard for most firms in the U.S., and a full return to the office is not expected.
Nationally, the full-service equivalent listing rate averaged $32.81 per square foot as of October 25, 2025, up just 0.1% year-over-year.
Total vacancy stood at 18.6%, 90 basis points lower than a year earlier, according to Yardi Matrix.
The 10 highest listing rates among those markets and their 12‑month changes are: Manhattan at $67.96 per square foot, down 0.7%; San Francisco at $65.30, up 4.7%; Miami at $56.34, up 6.6%; the Bay Area at $51.59, down 4.8%; Boston at $48.65, up 2.8%; Los Angeles at $46.65, up 10.4%; Austin at $45.79, down 2.1%; San Diego at $45.23, up 5.7%; Washington, D.C., at $40.50, down 2.2%; and Atlanta at $36.38, up 9.1%, according to Yardi Matrix.
The 10 lowest listing rates in the report are: Detroit posted $21.57 per square foot, up 0.5% over 12 months; the Twin Cities registered $27.16, up 4.0%; Orlando came in at $27.47, down 2.4%; Houston at $27.49, down 9.0%; Chicago at $28.12, up 3.3%; Portland at $28.42, up 0.6%; Denver at $29.33, down 6.5%; Phoenix at $29.67, up 5.1%; Tampa at $29.87, up 1.4%; and Philadelphia at $31.69, down 3.2%, Yardi Matrix reported.
Charlotte’s full-service equivalent listing rate is down 1.2% year-over-year to $33.44 and its vacancy rate is up 240 basis points to 18.9%.
Charlotte has delivered 7.1 million square feet of new space since 2021, equal to 9% of stock, and now has less than 300,000 square feet under construction.
Hybrid work arrangements have become the prevailing norm for most U.S. firms, with no widespread expectation of a full office return. Office vacancy rates have modestly decreased, while listing rates show minimal year-over-year growth. Major markets display a range of occupancy and pricing trends, indicating variability in demand and supply dynamics across regions.
This event underscores how tenant demand is evolving in response to the widespread adoption of hybrid work models. Flexible work arrangements are reshaping how organizations utilize office space, leading to new patterns in occupancy and space allocation. Traditional metrics for office performance are being reinterpreted as tenants prioritize adaptability over static space commitments. The shifting approach to workspace usage reflects broader changes in what tenants value and how they plan for their operational needs.
⚠️ Why it matters now
For CRE360’s audience, understanding the impact of tenant demand shifts is critical as it guides development, leasing, and operational strategies. Evolving space utilization trends require stakeholders to reassess assumptions about occupancy, leasing structures, and future space needs. The transformation of office usage directly influences how developers, capital providers, and operators approach product offerings and risk assessments.
Stop Reading Headlines
Start Understanding the Market
➤ TAKEAWAY
Stakeholders may monitor ongoing changes in tenant preferences and adjust their approaches to space planning and service delivery. Continued observation of listing rates and vacancy metrics could provide insight into how hybrid work is influencing long-term demand. The sector may see further refinements in how space is designed, marketed, and managed to align with evolving workplace expectations.
