Recent leases in these trophy buildings, such as the Candler Building at 220 W 42nd St., are fetching high prices, she stated, referencing the recently inked 15-year lease to Clear Channel Communications at the Times Square property. Stacom also highlighted other high-profile deals--like the $600 per sf price tag that 399 Park Ave. garnered and the still-pending proposals for the Tyco Building, which are averaging about $90 per sf.
Yet while some buildings are finding the tenants they need, it's often coming at a price. "We're seeing a dramatic rise in concessions," she stated, noting some landlords are giving six to 12 months in free rent to attract major office tenants. "There's nothing better than being a large tenant in this marketplace right now," she joked.
Stacom went on to explain that sublet space is still climbing in this 374-million-sf office sector. Much of this "shadow vacancy," sublet space that is not officially listed on the market, could add more than 2% to the city's overall vacancy rates--which right now hover around 9% in Midtown and 15% Downtown.
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