Q3 2023 Albany Office Market Report

The Albany economy, as the state capital, is heavily reliant on the government. The healthcare, education, and growing high-tech sector are also demand drivers for the region. The government – local, state, and federal – represent approximately one-quarter of employment in the region. As government agencies have allowed remote work in many cases, decisions on long-term work arrangements will help shape future office demand.

Through the third quarter of 2023, the Capital Region Office market has a vacancy rate of 20.5 percent. Albany County’s suburban market is ‘leading the way’ with 24.0 percent vacancy, including 1.12 million square feet of buildings under 50 percent leased. Asking rents decreased over the previous 12 months to $17.36 per square feet, but overall rents have remained stable despite the increased vacancy due to increases in operating expenses and construction costs.

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