Asking rents in the month of August jumped by 1.7 percent to its highest rate since February 2009, while activity in three major Manhattan submarkets showed encouraging results, according to a recent report released by Cassidy Turley.
The Downtown Class A submarket saw its vacancy rate decline for the second month in a row, finishing at 8.4 percent. The increasingly popular Midtown South submarket, meanwhile, continued to perform well and saw its vacancy rate drop to 8.1 percent.
“It seems that every time Midtown seems to gain a bit of traction, another large block of space (or spaces) hits the market,” the report reads, citing the eventual availabilities of office space at 666 Fifth Avenue. The Plaza submarket saw its Class A vacancy rate jump to 13.0 percent, making it the highest of any submarket in Manhattan. Asking rents in the Midtown market rose to $75.14 per square foot from $74.67 per square foot in July.
Rents rose by 2.7 percent in all three office classes, ending at $47.69 per square foot. Asking rents rose to $55.90 per square foot, its highest in three years.
“Despite a rise in asking rents, some companies are still postponing real estate decisions that don’t need to be made today,” said Peter Hennessy, President, Tri-State New York Region, Cassidy Turley in a statement today. “Understanding what influences the positive and negative changes in the commercial real estate market, enables Cassidy Turley to provide superior service to our clients.”