NEW YORK CITY-A mix of tenants seeking value-priced product and those looking for high-end office space helped drive New York's average asking rental rates up and vacancy rates down in the third quarter of 2013, according to a new report from Jones Lang LaSalle.
In Midtown, Class A space—where average asking rents have remained in the mid-$70s per square foot for most of the year—represents the weakest segment of the submarket. By contrast, nearly 40% of Midtown leasing this year has been in office product posting asking rents of less than $60 per square foot. But there has been almost as much activity at the top end of the market, with nearly 30% of deal volume coming from trophy spaces posting asking rents above $80 per square foot.
“New York's office market is performing well at the edges,” says Tristan Ashby, director of research for JLL's New York tri-state office. “The bulk of Midtown deal volume in the third quarter was for spaces with average asking rental rates south of $60 per square foot or north of $80 per square foot.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
