Currently in Manhattan, there are 68 blocks of available space on the market that are 100,000 square feet and greater—and that’s not even including buildings under construction.
These 68 blocks of space total 15.4 million square feet of the available supply, which accounts for one-third of the total available space in Manhattan. When examining the pricing for these large blocks, the average price equals $65.74 per square foot. Despite the inclusion of subleases in this rental average, this price is actually higher than the Manhattan overall average asking rent by $2.81 per square foot.
Looking at just Midtown, there are 41 of these blocks for lease totaling 8.6 million square feet of available space. With the average asking rent for these Midtown spaces at $71.94 per square foot, pricing for large blocks is higher than the overall average asking rent of $70.68 per square foot. In addition, the pricing for the four 100,000-square-foot blocks of sublease space in Midtown are higher than the combined total Midtown average at $76.57 per square foot. Grand Central has the most available blocks at 11, while the East Side/U.N. submarket only has one.
Downtown has 17 blocks of available space totaling 5.2 million square feet. The average asking rent for these 17 blocks is 24 percent lower than the Manhattan average at $53.04 per square foot. The World Trade Center and Financial submarkets have eight blocks of these spaces each, while six of the eight blocks in the World Trade Center submarket are available at Brookfield Place.
Midtown South has only 10 of these large blocks of space available. These blocks of space total 1.8 million square feet and only account for one-quarter of Midtown South’s available supply. At $73.76 per square foot, the average asking rent on large blocks is the highest out of the three markets. A big contributor to this high rent is the newly constructed 51 Astor Place, which, if taken out of the average, knocks the average for Midtown South to $66.43 per square foot.
Richard Persichetti is the Vice President of Research, Marketing and Consulting at Cassidy Turley, with 14 years of NYC research experience. Follow Richard via RSS. Richard.Persichetti@cassidyturley.com