Leases over $100 per s.f. reached record volume in 2024

As a testament to the continued strength of the high-end market, and growing supply constraints in that segment, Q4 2024 and full-year leasing volume in deals with base rent above $100 per s.f. reached record volume, with 4.4 million s.f. of high-rent leases in Q4 (18% higher than Q4 2019) and 12.3 million s.f. in 2024 (6% higher than 2019).

High-rent deals have historically been heavily concentrated in New York, which comprised about 75% of high-rent lease volume in 2024, however the Bay Area, Los Angeles, and South Florida are also seeing an uptick in the frequency of >$100 leases, and Boston, Dallas and Washington, DC have generated deals with starting rent in the $70s and $80s on a NNN basis.

The same phenomenon is evident when focusing on ultra-high-rent leases with base rents exceeding $200 per s.f.: 31 leases comprising nearly 800,000 s.f. closed in 2024, more than double the previous annual high. In the fourth quarter alone, a larger footprint of >$200 leases were signed than every year before the pandemic combined.

As new development slows, second-generation Class A and Trophy properties are seeing rent growth accelerate and surpass new construction as the most desirable blocks are leased up—potentially indicating that as supply constraints intensify, a broader share of Class A buildings will be capable of commanding higher rents.