April 17, 2019
Manhattan office rents reached a new high in the first quarter, averaging more than $80 per square foot, says Avison Young. The 3.5% year-over-year uptick in rents, driven by new development and renovated product, occurred even as leasing volume softened by 2% from year-ago levels.
“In Midtown South, average asking rents for Class A product rose to $100.40, reflecting that much of the new development, such as 412 W. 15th St. and 40 Tenth Ave., is priced in the triple-digits,” said Mitti Liebersohn, president and managing director, NYC operations. “Class A asking rents in Midtown rose to a record high of $92.33, nearly a 6% Y-O-Y increase, as new buildings in Hudson Yards and renovated product along Avenue of the Americas came to market at higher rents.”
Conversely, the Downtown submarket, where Q1 leasing was strongest, saw a 4% decline in Class A asking rents to $63.78 per square foot.
Be sure to attend the “How the Office Market is Reshaping New York” panel at Connect New York, coming up on April 30! Click here to register for the event.
For comments, questions or concerns, please contact Paul Bubny