U.S. Office Vacancy Rates Stall Near Highs, Despite More Hiring

Office vacancies have not changed in the U.S. despite the falling unemployment rate. According to real estate research firm Reis, who tracks office leasing and occupancy in 79 metropolitan areas across the country. Office vacancy rates were roughly 17% in the second quarter of 2014. That's nearly identical to the vacancy rate from one year earlier. Reis says that while more people are finding jobs, companies already have a lot of empty desks in their current offices and don't have the need for additional space just yet. Before the recession, office vacancy rates were hovering at around 13%. But, Reis believes the tipping point is not far ahead. The firm says, "If stronger labor-market gains persist, the recovery in the office market should become more pervasive, across an increasing number of metro areas." Washington, D.C. and New York are the two metro areas with the highest office occupancy rates. Cities with a large presence in the tech and energy sectors, like San Francisco and Houston, also have little office space available for lease. TheStreet's Julia Sun reports from New York.