Office occupiers and investors are increasingly shifting to the highest quality properties as the sector grapples with how best to adapt to hybrid work.
A CBRE analysis of 12 major US metros observes an ongoing "flight to quality" as occupiers work to lure employees back to physical offices. The firm reviewed more than 2,700 lease transactions across 12 large office markets since 2019 and found that average effective rents for top-tier properties increased by 3.8% in 2021 and by 6.7% so far this year. On the other hand, average effective rents for lower-tier properties slumped by 3.4% last year and by 1.1% so far this year.
The cities included in the analysis were Atlanta, Boston, Chicago, Dallas/Fort Worth, Denver, Houston, Los Angeles, Manhattan, Philadelphia, San Francisco, Seattle and Washington, D.C.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 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.
