Back then, 77 buildings reached or topped the $100 rent mark, all of which were located in Midtown. These buildings were in seven of the nine submarkets in Midtown, led by the Fifth/Madison submarket with 31 buildings, followed by Park Avenue with 21 and the Sixth Avenue/Rock Center submarket with 13.
Fast forward to today’s real estate cycle, and a shift has occurred for buildings with $100-per-square-foot asking rents. The total number of buildings has actually increased to 81, but the composition is quite different. Eight buildings outside of Midtown have achieved $100-per-square-foot asking rents—seven in Midtown South and one Downtown. In Midtown, every submarket, except for the Fashion District, has at least one building with a $100 asking rent.
Of the 81 buildings, 21 of them have achieved $100 asking rents for the first time during this current cycle. In Midtown, 17 of the buildings from 2007 have yet to reach the $100-per-square-foot mark, while 13 new buildings made it into the mix. The top three submarkets for $100 rents from 2007—Fifth/Madison, Park Avenue, and Sixth Avenue/Rock Center—remain the top three in the current cycle; however, 12 buildings from the previous cycle dropped out of this exclusive category and eight new ones reached the threshold. Overall average Midtown asking rents are still 10 to 15 percent off historical highs, which is keeping $100-per-square-foot buildings from reaching the 100 (buildings)/$100 club. Do not be surprised if the market bears this trend by the end of the year.