New construction is commanding a significant rent premium of 64% over average Class A submarket rents, and 20% over existing top-tier trophy assets, according to a construction report issued Friday by Cushman & Wakefield, surveying 24 select office projects currently under construction in 12 major US markets and Toronto.
"Tenants are demonstrating a strong bias for the highest quality, newly constructed office projects across major US and Canadian markets—they are looking for a fundamentally different, elevated, office experience," Rebecca Rockey, Cushman & Wakefield's Global Head of Economic Analysis & Forecasting, said in prepared remarks.
"These modern buildings built for today's employees offer a platform for companies to enhance culture through a shared workplace experience that can't be replicated at home."
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