A report from the Building Owners and Managers Association (BOMA) indicates few commercial real estate markets experienced rent increases during 2010.
The real estate data in BOMA’s 2011 Exchange Report shows rents are stable, according to BOMA, and are likely to remain that way. They are not expected to grow, however. As a result, commercial tenants planning to sign new leases or renegotiate existing ones may be in a good position, according to the report.
The report analyzed data from commercial buildings in more than 300 markets, classifying rents by rent per square foot. The ten least expensive markets in the report had rents ranging from $10.47 to $15.90 per square foot. The most expensive was New York, with a cost of $48.27. Even among the ten most expensive markets, only the top three had a cost above $40 per square foot.
"Rents are still compressed from the 2007 highs, but it looks like in most markets, the bottom has hit and it's stable now," said Lorie Damon, BOMA's vice president of education and research. "There has been modest rent growth in some of the better-performing markets, which tend to be on the coast."
The most expensive markets after New York included Washington, D.C., five California metros, Boston, West Palm Beach, Florida, and Chicago.