Through November 2015, Manhattan Class B average asking rents outperformed Class A for the second time in three years. Despite Class A asking rents averaging $15.76 per square foot higher than Class B, Class B asking rents skyrocketed 13.2 percent to $60.72 per square foot year-over-year. Class A asking rents grew only 4 percent during this time.
It was a clean sweep for Class B asking rents, as all three major markets outshined Class A asking rental increases. Downtown Class B asking rents jumped the highest, up 25.2 percent to $49.09 per square foot from $39.20 a foot. This one-year rental growth is more than double the amount Class B asking rents climbed Downtown between 2010 and 2014, when rents increased only 12.4 percent. All five Downtown submarkets had increases in Class B asking rents. The World Trade Center submarket led the way with a 92.9 percent increase to $57.63 per square foot from $29.87 a foot.
Midtown South Class B asking rents rose 16.2 percent year-over-year after remaining relatively flat in 2014. With a $10.08 per square foot increase in 2015 to $72.26, Midtown South Class B asking rents ranked the highest in Manhattan. Four out of 5 Midtown South submarkets saw increases in Class B asking rents over the past 12 months, with the Soho submarket leading the way as asking rents skyrocketed 79 percent to $96.90 per square foot. Greenwich/Noho was the only submarket with a drop in Class B asking rents. There they fell 1.7 percent.
Midtown Class B asking rents increased the least, up 9.5 percent to $60.05 per square foot. Seven out of 8 Class B submarkets had asking rental increases, with the Times Square South submarket topping the charts as asking rents jumped 24.9 percent to $61.47 per square foot. The Madison/Fifth Avenues submarket was the only Midtown submarket that saw a decline, down 7.2 percent to $60.95 per square foot.