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Despite increase in asking rents, 'real' office rents have declined

Inflation has far outstripped the slow rise in the sticker price for office space

Office rents have kept pace with inflation since 2019 in a few markets, including Tampa shown here, but this has been the exception to the national trend. (Jeff Palmer/CoStar)
Office rents have kept pace with inflation since 2019 in a few markets, including Tampa shown here, but this has been the exception to the national trend. (Jeff Palmer/CoStar)

That asking office rents have actually risen in an era of historically high vacancy rates presents something of a conundrum to commercial real estate observers. Several factors help explain this phenomenon, but the rapid rise in consumer prices that peaked in 2022 is an important piece of interpretive context.

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