Friday, April 20, 2007

WHAT ELSE IS NEW? Office Rents at Record High in Manhattan - New York Times 

Office Rents at Record High in Manhattan - New York Times

This should come as no surprise. When will there be a leveling off or a downturn?

Rents in Midtown reached a record average $70.77 a square foot, with some surpassing $150 a square foot, Cushman & Wakefield said.

At the end of March, average asking rent for Manhattan office space reached a record $53.43 a square foot, up 24 percent from $43.20 a year earlier, Cushman & Wakefield said. Rents in the top-quality Class A buildings rose 29 percent, to $64.54.

Leasing during the quarter fell to 5.4 million square feet, from 5.9 million a year earlier, according to Cushman & Wakefield. That did not include Lehman Brothers Holdings’s second-quarter sublease deal for 400,000 square feet at 1271 Avenue of the Americas, Time Warner’s former headquarters.

The vacancy rate fell to 5.7 percent, the first time in six years that it has been under 6 percent. The rate is down from 8.4 percent a year earlier.

“The trend is solidly upward,” said Kenneth McCarthy, Cushman & Wakefield’s managing director.


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