Office rents will continue to rise and I expect this to continue through 2015 and into 2016. The buyers of the recent office buildings will be looking for their return on investment and that will come from increasing the price per foot they charge tenants.
Banker & Tradesman reports the stage was set “for the big rent hikes to come has been a frenzy of office tower sales in the Financial District, Back Bay and Seaport over the last six months…More than 5.5 million square feet of office tower space changed hands or has been placed under contract between July and September, Collins and Regensburg note in a piece for the New England Real Estate Journal. Another 4 million square feet has hit the market or is about to.”
Additional details on the new office towers and projected office rent rates is available on Banker&Tradesman’s website, here.