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EFFECTIVE RENT PUSHES HIGHER INTO RECORD TERRITORY
Takeaway
Tenants faced higher occupancy costs during 2017. Registering its sixth consecutive year of rental rate growth, negotiated rent exceeded $40/sf for the first-time on record. Sustained demand from tech companies and professional/business services kept leasing volume steady. The second half of the year brought some signs that office-using employment was losing a bit of its momentum. Leasing also appeared to be cooling slightly. This may temper rent growth in 2018.