Effective Rents Rise in Most U.S. Markets

Rents increased more than concessions last year, pushing up tenant and landlord effective rents, according to Studley’s 2012 Effective Rent Index. Tenant occupancy costs surpassed 2005 levels, rising 12.5 percent to $41.81, while the National Landlord Effective Rent Index increased 26 percent year over year, from $15.44 to $19.45.

Midtown New York led in tenant occupancy costs in 2011 at $59.43, followed by Washington, D.C., ($54.42) and San Francisco ($50.36). And for the first time in the Index’s history, Houston surpassed the national median, increasing 8.8 percent to $27.12.

San Francisco had the highest landlord effective rents last year at $32.10, followed by Midtown New York, which saw a 94.5 percent increase to $28.10. The value of amortized concessions as a percentage of initial rent fell in several markets, including San Francisco, Downtown Los Angeles, Houston, Midtown New York, and Tampa Bay, Fla.

Source: CCIM.com

This entry was posted in #cre, Commercial News, Phoenix Real Estate and tagged , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s