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Global demand for high-quality office space keeps prime rents stable
Global prime office rents generally remained stable in fourth quarter 2022, according to CBRE.
While economic headwinds from elevated interest rates and high inflation continued to challenge office occupiers, robust demand for high-quality, well-located office space continued.
Average prime rents in 21 of the 33 major Americas region office markets tracked by CBRE increased year-over-year in fourth quarter, the same as in third quarter. Among those 21 markets, rent growth was split between 11 downtown and 10 suburban districts.
In the United States, economic uncertainty and occupier downsizings due to hybrid work resulted in negative net absorption in fourth quarter after four consecutive quarters of positive demand. Office buildings built before 2010 accounted for all the negative demand in fourth quarter. Dallas (+16.1 percent), Denver (+12 percent) and New York-Midtown (+7.2 percent) led major downtown markets for year-over-