Analysis of new, direct office lease comps in Class A suburban assets reveals certain key takeaways.
•Currently, leases are signing at contract rates 7.5% less than asking rents. However, contract rents for Class A space have grown a substantial 8% year-over-year.
•TI allowances experienced a general decline since Q2 2015, but landlords are attuned to the current stage of the CRE cycle: T.I. concessions are on the rise.
•Months of free rent, while also (incrementally) on the rise, remain largely stable. Current measures are aligned with the 2-year average, 0.77 months per year of term.