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Asking rent rose
1.8 percent in the first quarter from the same period a year
earlier, marking the slowest annual rate of office rent growth
since 2011. Effective rent rose by 0.4 percent.
If the new U.S. administration simplifies or lowers tax rates,
job growth could increase and spur higher growth in the office
market, said Barbara Denham, senior economist at Reis.
"Overall occupancy expanded in the first quarter, but growth
continued to disappoint as net absorption was the lowest since
2014," Denham said in a statement.
Net absorption, which is measured in terms of available office
space sold in the market during a certain time period, plummeted
more than 65 percent to 4.92 million square feet.
Construction activity slowed, with 7.94 million square feet of
new office construction completed during the quarter, compared
with 9.09 million square feet in the fourth quarter.
(Reporting by Shashwat Awasthi in Bengaluru; Editing by Maju
Samuel)
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