In the second quarter of 2025, Madison office vacancy fell to 15.7% from 16.1% in the first quarter, according to a report by Chris Caulum, vice president of commercial brokerage at Oakbrook Corp. Vacancy was just 8.8% in late 2019 but rose to 12.2% by late 2021, past 14% by mid-2024, and up to 16.1% earlier this year.
Class A space drove much of that rise — from 5.5% vacancy in Q4 2019 to 18.9% in Q1 2025, easing slightly to 18.3% this quarter.
Class B was 11.8% pre-pandemic and is now 14.4%. Class C was 11.1% and is now 13.3%.
Leasing activity slowed from Q1 but stayed healthy, with 41 leases totaling 149,000 square feet in Q2.
Average asking rents ticked up slightly to $22.13 per square foot on a full service gross basis. That’s up 12% since late 2019, even with much higher vacancy — largely due to elevated buildout and remodeling costs..
RSK: Somewhat good news. I know our class B space is full with a waiting lists.
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- - Volume: 25 - WEEK: 34 Date: 8/19/2025 12:56:14 PM -