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Midtown Office Concessions Reach a Record High

Free rent and tenant improvement allowances are on the rise for new deals and expansions in Manhattan.

By Betsy Kim | Updated on November 07, 2017

101 Park Avenue 101 Park Avenue, Midtown office space with installation

NEW YORK CITY—The JLL October 2017 office report sets forth that the asking rents for Midtown trophy offices have still not reached pre-recession peak levels. The Colliers International October 2017 market snapshot report also states Midtown’s average rent remains 11.5% below the third-quarter 2008 high of $92.04.

Colliers reports that compared to October 2016, Midtown leasing was down by 36.66%. October 2017 leasing in Midtown decreased by 10.9% to .89 million square feet, the second consecutive month with less than one million square feet of deals. But the Colliers report says despite the drop-off in demand, availability declined with October being Midtown’s tightest monthly available rate since February 2016.

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