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Why are office rents still climbing? It’s complicated.

Despite the laws of supply and demand, office rents keep floating higher

Despite record-high vacancy, office rents have kept rising nationally, especially at premium new buildings like New York's One Vanderbilt. (CoStar)
Despite record-high vacancy, office rents have kept rising nationally, especially at premium new buildings like New York's One Vanderbilt. (CoStar)

When office vacancy rates soar to record highs, and tenants scramble to return unwanted space to landlords in droves as they have recently, it would be natural to expect rental rates to be slashed in the face of lower demand to fill empty offices.

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