In New York, average work values (or tenant-improvement allowances) are up more than 46% since the third quarter of 2019, according to CompStak Inc.
A growing spread between starting and effective rents illustrates how office landlords – even among coveted Class A buildings – are seeing their rental income eroded as the office market remains squarely in favor of tenants.
It represents another challenge facing the office market, which continues to see depressed leasing activity and rising vacancy, including from sublease space.
New York commercial real estate data and analytics company CompStak Inc. found, since …
Philadelphia Business Journal, February 6, 2023, Ashley Fahey, Editor, The National Observer: Real Estate Edition