Concessions given to office renters decreased on average in 2024, the first time they have done so since CBRE began tracking them in 2019.Concession packages peaked in 2023, when they included a tenant improvement allowance of $97.55 per SF and 9.6 months of free rent on average, according to a CBRE analysis of 4,350 leases in 12 markets nationwide.
“The decrease in concessions last year is another sign of stabilization and nascent recovery in the office market,” CBRE President of Americas Investor Leasing Mike Watts said in a statement.
Although both metrics declined in 2024, they remain about 30% higher than they were in 2019. 2024 saw an average tenant improvement allowance of $87.51 and 8.9 months of free rent, well above $63.67 and 6.7-month averages in 2019.
There is a split in the market when considering top-tier versus lower-tier buildings, CBRE found...
RSK: Another sign that office leasing is slowly turning around.
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- - Volume: 25 - WEEK: 11 Date: 3/11/2025 9:04:20 AM -