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New Office Construction Commands 64% Rent Premium

Developers hope to provide clients a chance to “enhance culture” as they return to the office, Cushman & Wakefield said.

By Paul Bergeron | February 22, 2022 at 07:35 AM

New construction is commanding a significant rent premium of 64% over average Class A submarket rents, and 20% over existing top-tier trophy assets, according to a construction report issued Friday by Cushman & Wakefield, surveying 24 select office projects currently under construction in 12 major US markets and Toronto. 

“Tenants are demonstrating a strong bias for the highest quality, newly constructed office projects across major US and Canadian markets—they are looking for a fundamentally different, elevated, office experience,” Rebecca Rockey, Cushman & Wakefield’s Global Head of Economic Analysis & Forecasting, said in prepared remarks.

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