The financial gulf between trophy and Class A and A+ buildings and those in B and C classes continues to widen according to a new report from CBRE.
Base and effective rents for Class A and A+ properties grew by 5.2% and 3.1% respectively between 2023 and 2024. For Class B and C properties, rents fell by 5.7% and 1.2% according to CBRE’s analysis of 4,350 comparable new leases over 12 metro markets.
“This trend is supported by the high demand for limited new supply of top-quality, amenity-laden office buildings in prime locations,” the report read. There has also been a decline in the construction pipeline, adding negotiation leverage to landlords
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