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Urban class A rent growth continues to outperform suburban class A rent growth

  • ​In 2006, the spread between urban and suburban average asking rents was a mere 4.1 percent. At the end of 2017, the spread increased to 35.9 percent.

  • Urban average asking rents have grown 43.5 percent since 2011. Suburban rents have grown at just over half the urban rate at 24.4 percent.

  • Newly acquired buildings undergoing repositioning and new construction continue to push rents higher in the urban submarkets. Class A rents are up 5.5 percent year-over-year to $36.80 p.s.f. full service.

  • Meanwhile, outside of Nike’s headquarter expansion and a couple other owner-user developments, there are only 3 office projects above 10,000 s.f. currently under construction in the suburbs and average asking rents need to increase substantially to justify any significant new construction.​​

Source: JLL Research

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