While overall office vacancy has continued to rise throughout the course of the pandemic—thanks in part to an oversupply of new sublease space—average full-service asking lease rates for the sector have remained resilient, with landlords holding firm on asking rates. 

Asking rents for downtown Class A office properties were $51.99 per square foot last quarter, a 1.4% change over Q4 2020 levels, according to a new report from Colliers on the state of the sector. Meanwhile, asking rents for suburban office product averaged $32.33 per square foot in Q1, a 1% change over the prior quarter.

"While leasing remains well below pre-pandemic levels, the spread between asking and effective rates is widening as landlords continue to offer generous concessions such as free rent and tenant improvement allowances in place of dropping their rates," the report notes.