In the office sector (as well as multifamily), investors continue to be bullish regarding their forecasts for tenant retention and expectations in
office rent growth.
According to Yahoo Finance Analyst, "the PRNewswire chart
illustrates the improving view of surveyed investors with regard to their
ability to retain existing office tenants and increase rental rates as the
office sector slowly recovers. As the
expectations of tenant retention approach the 5-year average, rents are poised
to increase further. Tenants typically leave to find a better deal, but they
typically opt to stay put when rents are rising since they can get better terms
from their current landlord”.
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