NEW YORK CITY—Recent reports on the performance of the commercial real estate market here last year and for early 2017 either have indicated solid results—without much growth—or a small, but notable decline.

New research from JLL is no exception. The brokerage firm's latest hedge fund report shows rising vacancy among trophy buildings, yet rents remained strong, as did velocity of high-end transactions.

At year-end 2016, the vacancy rate for Midtown's trophy building inventory increased to 8.8% from 7% at the end of last year. The Midtown Class-A vacancy rate also increased throughout the year to 11.8%, representing a 1.4% increase from year-end 2015.

“The vacancy increase is definitely a sign of weakening conditions,” managing director Cynthia Wasserberger tells GlobeSt.com. “But it's not cause for alarm, rents held steady so landlords are willing to take on some more vacancy.”

In fact, the report continues, rents in the high-end sector held steady throughout the year. The average asking rent for direct space in Midtown trophy buildings increased just 1% year-over-year from $103.61 per square foot to $104.41 per square foot.

Despite rents staying put, demand for offices in upscale buildings remained strong, prompting many landlords to offer numerous concessions, the report continues. “Concession dollars went through the roof,” Wasserberger declares.

The volume of deals in the top tier spiked; with million-dollar transactions tripling in Midtown South, Wasserberger tells GlobeSt.com. Including renewals, expansions and new leases, 368,453 square feet of space was traded in the submarket throughout last year, largely due to new construction.

In total last year, 107 transactions were completed at starting rents of $100 per square foot or higher. The number falls short of the 2015 peak of 138 transactions but it surpasses the 97 deals signed in 2014.

Demand for new construction was strong in 2016, particularly in the Hudson Yards area, where over 871,000 square feet was leased, JLL reports. For the first time ever, Hudson Yards signed five deals—totaling 141,954 square feet—at rents exceeding $100 per square foot. That accomplishment, the report states, “solidifies this submarket as a destination for forward-thinking and high-end tenants who value the new construction in this dynamic neighborhood.”

NEW YORK CITY—Recent reports on the performance of the commercial real estate market here last year and for early 2017 either have indicated solid results—without much growth—or a small, but notable decline.

New research from JLL is no exception. The brokerage firm's latest hedge fund report shows rising vacancy among trophy buildings, yet rents remained strong, as did velocity of high-end transactions.

At year-end 2016, the vacancy rate for Midtown's trophy building inventory increased to 8.8% from 7% at the end of last year. The Midtown Class-A vacancy rate also increased throughout the year to 11.8%, representing a 1.4% increase from year-end 2015.

“The vacancy increase is definitely a sign of weakening conditions,” managing director Cynthia Wasserberger tells GlobeSt.com. “But it's not cause for alarm, rents held steady so landlords are willing to take on some more vacancy.”

In fact, the report continues, rents in the high-end sector held steady throughout the year. The average asking rent for direct space in Midtown trophy buildings increased just 1% year-over-year from $103.61 per square foot to $104.41 per square foot.

Despite rents staying put, demand for offices in upscale buildings remained strong, prompting many landlords to offer numerous concessions, the report continues. “Concession dollars went through the roof,” Wasserberger declares.

The volume of deals in the top tier spiked; with million-dollar transactions tripling in Midtown South, Wasserberger tells GlobeSt.com. Including renewals, expansions and new leases, 368,453 square feet of space was traded in the submarket throughout last year, largely due to new construction.

In total last year, 107 transactions were completed at starting rents of $100 per square foot or higher. The number falls short of the 2015 peak of 138 transactions but it surpasses the 97 deals signed in 2014.

Demand for new construction was strong in 2016, particularly in the Hudson Yards area, where over 871,000 square feet was leased, JLL reports. For the first time ever, Hudson Yards signed five deals—totaling 141,954 square feet—at rents exceeding $100 per square foot. That accomplishment, the report states, “solidifies this submarket as a destination for forward-thinking and high-end tenants who value the new construction in this dynamic neighborhood.”