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Analysis

Concession Rates Rising in Some Major Metros

Landlords are having to offer more to close lease transactions, including for prime and new buildings.

There’s no such thing as a free lunch, as most everyone knows. You have to pay for what you want. In the office leasing work. That is apparently also true according to a compStack analysis of lease transaction data, as the cost of concessions is going up.

“The perception is that these deals can close at triple-digit rents because they are coupled with hefty concessions packages,” the company wrote. “This is partially true—concessions (including free rent periods and tenant improvement allowances) have increased across many transaction and building types in Manhattan’s office market, including for prime and newly constructed buildings.”

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Erik Sherman

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