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Prime Office Rents Surpass Class A by More Than 30% Globally
Rents for prime office space–the uppermost tier of Class A, typically with rents in the top 5% to 10%–now average 31.4% over those for all Class A offices in markets across the world, Savills reported. Led by Midtown Manhattan, North America has the highest premium at 62.5% above average Class A rents.
Savills said the intense bifurcation in the commercial real estate market in the U.S. and Canada, with prime buildings seeing intense occupier demand, contributes to such a high premium, and that it’s likely to continue growing. In APAC, meanwhile, the prime premium stands at 33.7%, while EMEA has a significantly lower regional price premium for prime offices, at 17.9%.
Around the world, the largest occupiers reviewing their requirements in the first half of 2024 continued to expand or keep the same amount of space, according to Savills. Ninety-four percent of these occupiers chose to either expand or renew their current square footage.
- ◦Lease
