As suburban office markets come back into fashion, some have experienced greater demand from tenants than others.
A recent report from commercial real estate services firm CBRE looked at vacancy rates and rental rate increases in a number of revitalized suburbs.
A lack of new supply has driven rents up in the majority of these markets, according to Andrea Cross, Americas head of office research with CBRE, while in others the concentration of specific industries (bioscience, technology) has created outsized demand.
Palm Beach County and Suburban Fort Lauderdale are the only two suburban markets in Florida that made the list.
In Palm Beach County, which ranked sixth, office rents rose 9.5 percent year-over-year, to $31.92 per sq. ft. During the same period, vacancy declined by 240 basis points, to 16.5 percent.
Suburban Fort Lauderdale ranked ninth on the list. In the suburbs of Fort Lauderdale, office rent growth was 8.3 percent, reaching $29.28 per sq. ft. by the end of last year. The vacancy rate in the market fell by 300 basis points between the fourth quarter of 2015 and the fourth quarter of 2016, to 12.9 percent.
Below is a summary of the rankings:
1 Suburban Nashville, TN
2 Cambridge, MA
3 Oakland, CA
4 Suburban Atlanta, GA
5 Greenville, SC
6 Palm Beach County, FL
7 Orange County, CA
8 Suburban Louisville, KY
9 Suburban Fort Lauderdale, FL
10 Suburban Seattle,WA
For more details regarding rental rate growth percentages by market, CLICK HERE.
Get the latest industry news and information from CRE-sources delivered right to your email inbox!
And we promise…no more than one email each morning.