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.