Effective Rent Indexes

Since 1995, Savills Studley has been providing the real estate industry’s only comprehensive, in-depth study of effective rental rate trends and the real cost of occupancy for tenants in the nation’s major Central Business Districts (CBDs) and surrounding suburban markets. The report tracks actual lease terms that reflect negotiated rents and concessions, as well as the costs of maintaining a building that are partially passed through to tenants – operating expenses, real estate taxes and electricity costs.

Every year, our research team examines larger long-term direct deals signed in higher-caliber Class A properties. All statistics in this year’s index are based on larger long-term leases completed during 2017 in existing or newly constructed Class A buildings.

Terminology:

Total (gross negotiated) rent is separated into its key components: net (or base) rent and building expenses (operating expenses, real estate taxes and electricity costs).

• The Tenant Effective Rent Index (the cost of occupancy to the tenant) is derived from total rent less the amortized value of concessions provided by the landlord.

• The Landlord Effective Rent Index (the landlord’s bottom line) is calculated from total rent less costs incurred by the landlord, which include expenses, concessions and commissions.

Megatrends in European Leisure
 

Research search results: 43 found

 
Tampa Bay 2017 SERI Report

Tampa Bay 2017 SERI Report

May 02, 2017

Tampa Bay continued to see corporate relocations in 2016, which spurred strong hiring and leasing during 2016. Combined Class A deal volume in the Tampa CBD and Westshore rose to 1.1 msf. Although there is a lot of excitement regarding new office projects, particularly in the Tampa CBD, most of the properties are more than a year away from delivery. In turn, quality space options remained tight and landlords pushed rent higher.

 
 
 
Washington DC 2017 SERI Report

Washington DC 2017 SERI Report

May 02, 2017

Effective rent has increased over 2016 as the market remains bifurcated. There is strong demand for the newest trophy product, but tepid activity in the balance of the market. As a result, total rents increased as a reflection of the caliber of property in which the bulk of activity took place. Concessions rose along with face rents, as landlords use increasingly attractive packages to lure tenants in a competitive market.

 
 
 
West Los Angeles 2017 SERI Report

West Los Angeles 2017 SERI Report

May 02, 2017

Steady hiring and leasing among entertainment and social media firms, as well as some professional business services companies, fueled brisk competition for space. Class A leasing volume totaled 5.0 msf, exceeding the long-term average by more than 10.0%. In turn, landlords pushed rent sharply higher. Investors continue to pay a premium for assets on the Westside, in several cases exceeding $500/sf and putting additional upward pressure on rent.

 
 
 

Key contacts

Keith DeCoster

Director of U.S. Real Estate Analytics

+1 212 326 1023

+1 212 326 1023