NEW YORK CITY-Cities across the nation are reaching healthy economic levels, and suburban markets are reaping the benefits. As new construction slows, vacancy rates decline and rents increase, suburbia is increasingly becoming an attractive alternative for many companies.

According to the Cushman & Wakefield US Office Market Barometer, CBDs like San Francisco, Boston and Midtown New York are experiencing above average momentum–driven by the finance and business sectors–and this will inevitably lead to rent spikes. “Space availability and rental rates in major cities are now reaching pre-economic downturn levels,” explains Maria Sicola, senior managing director of research for C&W. “The lack of space options in major cities has made the suburban markets much more attractive and viable.”

The report studies real estate performance and expectations in 43 CBDs and 53 suburban markets based on data compiled in the first half of this year.

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