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Report: Prime Asset Sales Rise on Strong U.S. Office Property Demand
Prices for prime U.S. office assets have risen sharply this year, according to a new report from Yardi Matrix. The firm reports that office property transactions, spurred since summer by lower interest rates, totaled $74 billion through October.
Per-square-foot prices for buildings in central business districts are 24.6% higher than they were last year, while sales of buildings with A+ and A ratings went up 12.1%. Demand for office space remains strong, with employment in office-using sectors increasing by 1.7% over the past 12 months. Average national listing rates were up 2% in October from the same period last year, while the vacancy rate increased 40 basis points from the previous month, reaching 13.7%, according to the report.
“This rate of increase in CBD prices hasn’t been seen since the years before the Great Recession,” the report said. “The rapid increase in pricing is a trend we will closely monitor.”
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