October 9, 2019
Outdoor space has become one of the most sought-after amenities among tenants in the Manhattan office market, CBRE reported. Landlords are integrating dedicated outdoor areas into their buildings, such as single-floor terraces and landscaped rooftops, and commanding a 14% rent premium for terrace floors.
New construction is leading the trend, with 79% of Manhattan office buildings completed since 2010 or currently under construction featuring outdoor space. However, landlords of older existing properties are also leveraging outdoor space to attract tenants, repurposing setbacks and vacant rooftops as terraces and roof decks.
“The addition of terraces and rooftop communal areas is increasingly common in landlords’ capital improvement efforts of their older assets,” said Nicole LaRusso, director of research & analysis, CBRE Tri-State.
“Only 27% of office buildings in Manhattan currently offer outdoor space,” she added. “The robust demand and limited availability have generated higher premiums for floors with private terraces.”
Pictured: The recently added rooftop lounge at Silverstein Properties’ 120 Broadway.
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