Manhattan-based real estate
“Many large tenants are reserving space in buildings under construction, such as the law firm Covington & Burling, which recently leased 160,565 sq. ft. at the 1.5 million sq. ft. New York Times building [set for delivery next summer],” says Steven Coutts, senior vice president, Studley. “Others are looking Downtown where the Class-A availability rate fell significantly to 11.8%, or 4.9% lower than it was at midyear 2005.”
Midtown’s tight vacancy helped New York City lead the nation in asking rent growth during the second quarter. Data from Manhattan-based real estate research firm Reis Inc. shows that New York City posted a 3.9% jump in asking rents during that quarter, followed by Fort Lauderdale and San Bernardino-Riverside at 3.0%. For tenants seeking space in Midtown Manhattan, the message is simple enough: Pay up, or look elsewhere.
The full 2006 Studley office report can be viewed here.