New Hampshire’s office market is tightening as supply dwindles and lease costs rise. Reduced new construction and sustained demand are driving the shift.
The statewide office vacancy rate fell to 10.3% in Q3, down 3.1% from a year earlier, while average asking rent climbed to $22.28 per square foot, a 1.7% increase. These figures indicate a continued tightening of the market.
Hybrid work remains prevalent, with New Hampshire ranking fourth nationally for the share of hybrid job postings, and some firms such as Fidelity have shifted to full‑time on‑site staffing, prompting modest downsizing of office footprints. The hybrid model continues to influence space demand across the state.
Construction activity is limited; only a few projects have broken ground and are stalled awaiting tenants, while conversions like the former Liberty Mutual campus in Dover are being repurposed into mixed‑use developments, further reducing available office space. These factors together keep new office supply scarce.
The industrial and warehouse sector is stable, with a 5.8% vacancy rate and rents of $11.79 NNN, up 4.4% year‑over‑year, and the $47.5 million sale of the former Anheuser‑Busch plant to United Therapeutics marks the largest transaction. Overall, the market shows divergent trends between office and industrial spaces.
WalletHub placed New Hampshire fifth overall for jobs, reflecting strong job opportunities, solid employment growth, low unemployment, high median income and short work weeks. These rankings underscore the state’s attractiveness for businesses.
Source: www.nhbr.com
