Stat of the Week

Grading Manhattan’s Class B Buildings


The Manhattan Class B average asking rent stands at $56.84 per square foot through April of this year—just 2.5 percent higher than the historical peak of $55.47 in 2007. However, the makeup of this average is significantly different from the last time Class B rents were this high. Not surprisingly, Midtown South, up 26.1 percent Read More

Sammons Says

To Be Class C in Manhattan

Class C layout

Ah, the Class C building. To put it delicately, it is considered…less than desirable. Typically, these properties require numerous upgrades and represent the most affordable alternatives in the market. In fact, Class C buildings are so easily dismissed by most that some brokerage firms don’t even bother to track their data.

But that’s unfortunate, Read More

Stat of the Week

For First Time in Recent History, Class B Availability Lower Than Class A


A flight to value is occurring in the Manhattan office market as Class B office product remains in high demand.

At 10.6 percent, the current availability rate for Class B space is 170 basis points less than the Class A rate of 12.3 percent. This is the only real estate cycle in recent history in which Class B availability rates have been lower than those for Class A. This trend started in 2012 and has continued for the last 10 months. Read More

Stat of the Week

Midtown South Average Asking Rent Grows

Midtown South, Class B.

And so it grows–the Midtown South Class B average asking rent that is.

That figure closed July at $47.14 per square foot, up a dramatic 2.7 percent in the month alone, and the highest since December 2008, when it was $47.31 per square foot. With the Class A segment of this area presenting limited inventory (20.5 million square feet), it was thought a good idea to take a look at what was happening in the much larger Class B segment (51.3 million square feet). Read More