NEW YORK CITY—Whether it's the East Side or West Side, Downtown is the place office tenants want to be. Yet, portions of the market are considerably cheaper—and more available—than others, according to a new report from CBRE.
Lower Manhattan's popular office market has shown nearly equal leasing activity year-to-date on the east and west side of Broadway, the research by CBRE Group, Inc. Global Research and Consulting shows. West of Broadway has seen 1.76 million square feet of office leasing, while East of Broadway has seen 1.75 million square feet of activity.
Using a new analysis of Downtown, the report found that for large occupiers looking at that area, dividing the office market along Broadway between East of Broadway (EB) and West of Broadway (WB) provides a fresh perspective. Supply and demand indicates that EB is particularly attractive to value-seeking tenants, while WB appeals to tenants who still want value compared to Midtown or Midtown South, and also prefer post-1980 space.
Despite the differences between these two “halves” of Downtown, the report states, EB and WB have experienced a surge in investment activity, have major development projects taking place and continue to attract a healthy mix of new non-FIRE tenants.
The average asking rent for WB is $58.14 per square foot compared to $43.03 per square foot for EB, while WB the availability rate is 13.9% versus 11.9% EB.
The reports authors were not available to discuss the results with GlobeSt.com at press time.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
