Supply and demand…

October 18, 2004

Office rents in Nashville have been stagnant lately, according to this story in the Nashville Business Journal, in part because there’s over 700,000 square feet of space available in the area. So it seems a bit odd that Accredo Health (ACDO) decided to pay 11% more last year for the 36,000 square feet it leases from the mother of one of its officers and directors. According to Accredo’s proxy, it paid Dianne Griffith, whose son, Kyle Callahan is a senior vp and director, $540,297 last year for the space, up from $485,628 in fiscal 2003. Though in the proxy, Accredo says that the lease, which expires at the end of next year, has competitive terms, the rent hike certainly suggests that supply and demand isn’t quite working here.

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