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Experts Say Midtown Leads the Way

NEW YORK CITY-Midtown rents are edging up and should be at or near all-time high points within the next 24 months, Grubb & Ellis execs predict.

By Barbara Jarvie | Updated on October 27, 2005

NEW YORK CITY-”Midtown will lead the way over the next few years,” said Howard Grufferman, vice chairman, transaction services group, during a Grubb & Ellis forecast. He said the firm saw a discernable trend–a $3 per sf increase–in Midtown pricing from the mid summer to the end of the season.

He predicts in 24 months, Midtown rents will rise by $13 to $15 per sf. He expects the under-construction Bank of America building on Sixth Avenue will command rents of $100 plus per sf. “Demand is strong. There’s going to be a significant rise in rental rates.”

He also pointed out that there’s a lot of activity in Midtown South. The story for next year could be, Grufferman said, is the squeezing out of small business in the Grand Central area who can no longer afford the increasing rents.

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