Both macroeconomic conditions and real estate fundamentals supported increases in office rents during 2014, and owners of class A space responded accordingly. Tenant effective rents—the average cost of occupancy for tenants—last year posted their biggest year-over-year gain in four years, Savills Studley says in its annual Savills Effective Rent Index report.
All of the CBD and suburban markets covered in this year’s report saw effective rent increases and total rent increases. For two-thirds of the markets, the effective rent increases were 5% or more, although a handful of markets—among them, San Diego, Dallas, Miami and Washington, DC—saw increases of less than 5%. Meanwhile, operating expenses ticked up slightly overall, while remaining flat or declining in a handful of markets...Class A Rent Growth Goes Nationwide
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National Office Sector Report (Q1 2015)