It is no secret that the comparative value between CBD and suburban-located office assets has drastically changed…
In less than two decades the increasing premium for CBD-located office space is kicking into reverse.
The trend kicked into high gear as a result of the pandemic as city centers were vacated.
When we look at the average price premium for CBD office assets over suburban assets, we see:
🔹 In January 2018, suburban-located assets went for $211/SF in contrast to CBD-located properties at $374—a 77.3% premium.
🔹 In Q3 2021, the average price premium for CBD office assets over suburban assets dropped dramatically to 48.0%.
As we move forward into 2022, the premium between CBD and suburban assets is predicted to continue to decrease.
About the Author
John Milsaps, a Senior Advisor at SVN Commercial Advisory Group, specializes in landlord and seller representation in Tampa's professional office and healthcare real estate sectors. His expertise in commercial office space makes him a trusted advocate for clients seeking strategic real estate solutions.
