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Office property clock

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Reading the clock

Average asking rents rose by 0.2 percent over the quarter, slower than earlier in 2017 as well as compared to 2015 and 2016. Relative to Q3 2016, rents are up 2.7 percent, slower than the 3.2 percent annual rate during the second quarter. The continued flight to quality to new supply has taken high-priced blocks off the market, while relocating and rightsizing tenants have given back lower-cost second-generation and commodity space. Growth continues to be found in a mix of primary and secondary geographies, with Raleigh-Durham (+3.5 percent), Silicon Valley (+2.6 percent), Charlotte (+2.3 percent), Dallas (+2.2 percent) and Tampa (+2.2 percent) leading markets in terms of quarterly rent increases. The addition of new supply will also have a upward effect on asking rents over the short term, although a broader rise in vacancy across asset classes will keep effective rents flat and eventually trending downward. ​​

Office Property Clock explained (image)