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Concessions Driving Down Rents: GVA Williams

NEW YORK CITY-According to a report by Manhattan-based GVA

By Betsy Kraat | Updated on July 26, 2001

NEW YORK CITY-While everybody knew the halcyon days of 2000 were over,experts could not agree how long the market would slide beforestabilizing. Now, it seems, they have a better idea.

According to the research department of GVA Williams, the current average asking rent in Midtown North is $64.21 per sf, a $1.66 drop in asking rents for the same quarter last year. The net effective rent has plunged to $54.01 per foot, approximately $5 less than the net effective offered last year. In the second quarter of 2000, asking rents averaged $65.23, while net effective rents were averaging $58.95.

“Because owners are facing a slowdown of demand for office space on the market, they are offering more free rent to potential tenants,” says GVA Williams CEO and president Michael T. Cohen. “Owners are also offering an increased renovation package.”

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