U.S. office rents climbed in the third quarter as leasing extended a rebound following almost three years of declines, Reis Inc. said.
The average effective rent, or what tenants paid after any landlord concessions, rose to $22.39 per square foot, the highest since 2009's fourth quarter, the New York-based real estate research company said in a report today. It was up from $22.04 a year earlier and $22.25 in the second quarter. Landlords had a net increase in occupied space of 6.19 million square feet (575,000 square meters), the fourth straight gain.
Hiring by companies in industries such as technology and oil services has partly offset sluggish economic growth nationwide and market turmoil sparked by Europe's debt crisis. Technology-heavy cities such as San Francisco and San Jose, California, led the growth in rents, along with New York, Boston, San Antonio and Houston, according to Reis.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.