A rising tide of new office projects may be skewing the national average rental rate upward and obscuring increased leasing challenges for second-generation properties in many markets, according to Transwestern’s latest U.S. office market report.
Monthly asking rent for office properties averaged $26.97 per square foot in the third quarter, representing a 3.4 percent increase from a year earlier and a five-year gain of 19.7 percent, reported Transwestern. Much of that national increase reflects above-market rents at new or renovated projects, where landlords have incurred elevated material and labor costs to complete amenity-rich offerings.
The national office vacancy rate has plateaued near 9.8 percent, equal to the rate one year ago. A dozen of the 49 markets tra
