(Bloomberg) -- Brookfield Asset Management Inc. said rents for “quality” office buildings in New York climbed more than 30% from pre-pandemic levels. 

Rental rates need to be higher for new buildings to account for the more than 20% increase in costs to build those properties, Chief Executive Officer Bruce Flatt said in a letter to shareholders as the firm issued first-quarter earnings. 

New York, which has been grappling with high vacancies for certain office towers, has seen various hedge funds and investment firms seek out new office space in the city. Brookfield, which is planning to publicly list one-fourth of its asset management business, has more than 270 office properties, a list that includes Five Manhattan West and 660 Fifth Avenue in New York City, and owns a variety of other real estate including residential buildings and numerous shopping malls.

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