Commercial rents skyrocket
Rents on office properties jump an average of 3.1 percent in second quarter, the sharpest jump in over six years.
NEW YORK (CNNMoney.com) -- The cost of real estate is rising for businesses across the country, as office rents took their biggest leap in over six years, according to a new report.
Effective rents on commercial properties jumped 3.1 percent during the second quarter, up from a 2.8 percent increase in the first quarter, and 2.1 percent a year ago, according to a study by real estate research firm Reis Inc.
The rise was the sharpest since the third quarter of 2000, when the technology-stock bust and the effects of the September 11th terrorist attacks increased office vacancies across the country.
The commercial sector's strength is worlds apart from the sagging residential market, which has been in the midst of a slump for two years.
Nationwide, only 12.7 percent of office space is vacant, the lowest rate since the third quarter of 2001, according to the report.
New York City has the lowest office vacancy rate at 6.6 percent, while Detroit has the highest at 21.5 percent.
Rent growth was also highest in New York City, jumping 7.8 percent in the quarter. Dayton, Ohio had the biggest rent decrease at 0.9 percent.