CHICAGO—Office employment in the region only grew by only 1.2% in 2016, but deal volume among class A properties in the downtown surpassed 10 million square feet for the second year in a row. Landlords were able to take advantage of all this activity and boost rental rates, according to the Savills Studley Effective Rent Index. The average total rent increased 5.6% in 2016, and stood at $50.35.
That's a new peak, and the effective rent for landlords, meaning the total rent minus expenses such as operating expenses and taxes, hit $14.73, a 13.6% increase.
“The effective rent is very important, because it paints a true picture of what's going on,” Eric Feinberg, senior vice president and co-head for Savills Studley's Chicago Region, tells GlobeSt.com. “Rent only tells part of the story.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
