.jpg "Image treatment")
CONCESSIONS PUSH HIGHER, EFFECTIVE RENT FALLS
Takeaway
Average negotiated rent fell below $100 for the first time since 2014 as landlords stretched to boost leasing activity. Owners pushed concessions even higher into record territory, spurring an 11.2% decrease in tenant effective rent during 2017. Tenants responded. Leasing volume surged in the second half of the year, totaling nearly 19.0 msf. Despite the increased activity, most firms will still have multiple space options to choose from in the next few quarters, compelling landlords to keep concessions at their current record levels.