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Office property clock

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Reading the clock

Asking rents paused during the second quarter, registering growth of only 0.1 percent overall during the quarter and 2.3 percent over the year to $33.82 per square foot, the latter in line with recent quarters’ annual gains. This slower pace of growth masks another instance of bifurcation between geographies and asset classes. The shifting composition of blocks based on quality and, as a result, price is leading to sustained growth in asking rents in suburban submarkets compared to the flatlining observed over recent quarters in CBDs. Secondary markets, most notably Austin, Charlotte, Orlando, Nashville and Raleigh-Durham, continue to be the main drivers of asking rent growth.

Office Property Clock explained (image)