Office rates unchanged, but it’s a tenants’ market
Jim Adler, executive vice president of office services, spoke with Paul Bergeron at GlobeSt.com about some of the interesting and unique factors that have come into play in for the office market. He noted that landlords are answering inflationary pressures by increasing concessions 10% to 15% higher than a year ago, such as higher construction allowances and more rental abatement, to attract new tenants.
“In some cases, they are fully furnishing spaces to eliminate tenant concerns over rising costs and/or delayed deliveries,” he said. “These new enhanced incentives are supporting sustained rental rates…the market is getting healthier and we think 2023-2024 will mark a return to normal yearly increases – the recovery is underway.”
Read the full article at GlobeSt.com
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