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The Perfect Moment to Negotiate Office Rent

The sweet spot occurs when 75% or more of a market’s peak-to-trough decline has occurred.

By Lynn Pollack | February 24, 2021 at 07:18 AM

Office tenants looking for the “sweet spot” to re-enter a market will likely have to move more quickly than during previous recessions, according to new research from Cushman & Wakefield. 

C&W economists say the sweet spot occurs when 75% or more of a market’s peak-to-trough decline has occurred. Historically, most CBDs have seen larger rent declines and have taken longer to hit their trough than suburban submarkets, and C&W predicts that 42% of CBD submarkets are twice as likely to take more than 11 quarters to bottom out than their suburban counterparts. On average, CBD rents decline 375 bps more during recessions than non-CBD submarkets, and they also take slightly longer to hit their trough.

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