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Concession values index.

Tenants achieved an average tenant--improvement allowance of $39.02 per sq. ft. and an average rent abatement of 6 months in Midtown leasing transactions concluded over the last three months, according to a new measure of the value of lease concessions published by CB Richard Ellis.

This new measure--called the CBRE Concession Values Index--is a feature of CB Richard Ellis' enhanced monthly market report, CBRE MarketView, that the Company is unveiling this month.

The CBRE Concession Values Index tracks rent abatement and tenant-improvement allowances per sq. ft. for new leases.

Transactions considered include new leases of 10,000 sq. ft. or greater for raw space in Midtown, and new leases of 5,000 sq. ft. or greater for both raw and as-is space in Downtown and Midtown South, on a rolling-three-month basis.

For Downtown, concessions packages over the past three months ranged from 1 month of rent abatement with no tenant improvement allowance for as-is space to 16 months of rent abatement and $45 per sq. ft. tenant improvement allowance for raw space.

In Midtown South, concessions ranged from 3 months of rent abatement with no tenant improvement allowance for as-is space to 7 months of rent abatement and $50 per sq. ft. tenant improvement allowance for raw space.

"Landlord concessions are an important economic factor in evaluating the office leasing market, but one on which it is very difficult to compile accurate and comprehensive information," said John F. Powers, CBRE's President of the Tri-State Region.

"Our large market penetration, combined with our management approach, has allowed us to provide this unique and timely insight on the Manhattan marketplace."

The CBRE Concession Values Index is one of two new features in the MarketView reports. The CBRE Taking Rent Index--which tracks the difference between published asking prices for office space and the initial taking rents that tenants actually pay when deals are consummated--is also being launched this month.
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Publication:Real Estate Weekly
Article Type:Brief Article
Geographic Code:1USA
Date:Oct 22, 2003
Words:317
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