US office rents extend gradual recovery in Q4

[SEATTLE] US office rents rose in the fourth quarter, extending a gradual recovery from the recession that's prompted some landlords to sell buildings as occupancies climb.

Tenants paid an average of US$23.48 a square foot, up from US$23.32 in the previous three months and the 13th straight quarterly gain, according to a report by Reis Inc. Effective rents, the amount after any landlord concessions, increased from US$22.98 a year earlier, the New York-based research firm said.

Sluggish employment growth has translated into a modest rebound in the office market during the past four years. Technology, energy and media companies have led leasing, helping to lift property values in select cities including New York, San Francisco and Houston.