Grade-A office towers draw new tenants

Agents report steady enquiries for modern office floors in central business districts, led by companies that are consolidating several older offices into one address.

Tenants are asking for flexible layouts, reliable backup power and covered parking, and many accept a smaller floor plate in exchange. Older buildings that cannot offer these are filling more slowly and competing on price.

What it means for investors

Well-located towers with long leases remain the safest income. Buyers of older stock should budget for an upgrade before expecting comparable rents.