Asking rents remain strong as demand for quality buildings continues

In Q3 2023, newer Class A properties have pushed average asking rents upward as occupier flight to quality continues. Asking rents have increased 7.6% year-over-year, with Class A asking rents increasing 8.5%. While asking rents have increased, so has availability. Availability increased by 90 basis points (bps) year-over-year to 29.6% and continues to remain well above pre-pandemic levels. Sublease availability has increased, as well as new deliveries which has also pushed availability upward. Given the new development pipeline and lower levels in leasing activity relative to pre-pandemic, availability is likely to remain high. Additionally, asking rents will likely begin to flatten as availability increases.

Read the full report