Rents at small-cap office properties saw their largest decline in three years in September, dropping 0.42% to $17.89 per square foot, research firm Boxwood Means Inc. reports. Year-over-year rent losses, at 3.07%, are nonetheless, viewed as modest compared with other property types, the group says.
Regionally, the Southwest was hit with the largest year-over-year losses for the industrial and office sectors, at 10.24% and 7.01%, respectively.
The West, which Boxwood Means describes as "overly fatigued by its housing debacle," has posted retail rent declines of 9.29% and shopping center rent declines of 7.15% since last September.
The situation is less volatile in the Midwest, which is home to some of the nation's smallest year-over-year rent declines. The Northeast, meanwhile, posted the best year-over-year rent losses for the office, industrial and retail sectors, with declines of 0.81%, 3.07% and 7.17%, respectively.
Boxwood Means finds that the warehouse sector remains the only sector of substantial underperformance in the Northeast, with a 9.35% year-over-year rent decline.
SOURCE: Boxwood Means
