{"id":3823,"date":"2017-04-25T00:00:00","date_gmt":"2017-04-25T00:00:00","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/growth-in-office-rents-slowing-down\/"},"modified":"2017-04-25T00:00:00","modified_gmt":"2017-04-25T00:00:00","slug":"growth-in-office-rents-slowing-down","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/growth-in-office-rents-slowing-down\/","title":{"rendered":"Growth in Office Rents Slowing Down"},"content":{"rendered":"

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Amid a surge in new supply, vacancy increases in many major U.S. office markets are slowing price hikes, according to Cushman & Wakefield, a real estate<\/a> services firm. Nationally, average asking rents for office space rose 1.8 percent between the first quarter of 2016 and the same time period in 2017, the slowest annual rate of growth since 2011, according to data firm Reis Inc.<\/p>\n

The office market is not expanding at a rate in line with the rest of the economy, partially because tenants are learning to use space more efficiently, industry insiders note. “The office market has yet to see a bounce or accelerating growth in this recovery, and few signs suggest it will do so this deep into the expansion,” Reis Inc. researchers note. Further, rents and occupancy rates in some of the top markets in the U.S. are seeing added pressure from an increase in supply. Therefore, investors who paid top dollar for office properties in recent years are not seeing the income growth they had originally expected.<\/p>\n

Rent increases through 2020 are predicted to be about 3 percent to 4 percent annually, according to Green Street, which recently revised its projections to the lower percentages. Still, the office sector is considered relatively healthy, even if prices aren’t surging. Companies are still showing strong demand and are increasing employment.<\/p>\n

Source: \u201cOffice Market Swings in Tenants\u2019 Favor,\u201d The Wall Street Journal (April 18, 2017) [Log-in required]<\/em><\/p>\n<\/div>\n<\/div>\n

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Amid a surge in new supply, vacancy increases in many major U.S. office markets are slowing price hikes, according to Cushman & Wakefield, a real estate services firm. Nationally, average asking rents for office space rose 1.8 percent between the first quarter of 2016 and the same time period in 2017, the slowest annual rate […]<\/p>\n","protected":false},"author":1,"featured_media":3824,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[41,818,84,907,3053],"class_list":["post-3823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-property","tag-real","tag-real-estate","tag-tenant","tag-tenants"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4920,"url":"https:\/\/amazingproperty.com.ng\/blog\/nigerias-commercial-real-estate-market-outlook-still-gloomy\/","url_meta":{"origin":3823,"position":0},"title":"Nigeria\u2019s commercial real estate market outlook still gloomy","author":"Amazing Property","date":"June 12, 2017","format":false,"excerpt":"An illustration of a proposed commercial development. PHOTO: UBOSI ELEH AND COMPANY Uncertainties in the real estate industry have continued to dampen commercial property market, on the back of a turbulent Nigerian economy. And this monetary and fiscal polices largely driven by the country\u2019s macroeconomic fundamentals, stoked inflation, slowed economic\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/Ubosi-12-06-2017.jpg?fit=1200%2C676&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/Ubosi-12-06-2017.jpg?fit=1200%2C676&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/Ubosi-12-06-2017.jpg?fit=1200%2C676&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/Ubosi-12-06-2017.jpg?fit=1200%2C676&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/Ubosi-12-06-2017.jpg?fit=1200%2C676&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":7249,"url":"https:\/\/amazingproperty.com.ng\/blog\/nigeria-office-market-has-swung-into-tenants-favour\/","url_meta":{"origin":3823,"position":1},"title":"\u2018Nigeria office market has swung into tenants\u2019 favour\u2019","author":"Amazing Property","date":"November 27, 2017","format":false,"excerpt":"Erejuwa Gbadebo
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