Office Rental Rates in NY- 2nd Quarter 2014

Costar Group, the Commercial Real Estate Information Company reports that the NYC office vacancy decreased from 8.4% in Q2 2014 from 8.5% in the previous quarter. Average quoted office rental rates in NY increased to $55.28 PSF, up 1.3% over $54.59 in Q1. 

 

 

 

An analysis of HISTORICAL RENTS in all building classes throughout Manhattan follows.

                 Q2 2014       Q1 2014         Q4 2013

Class A @   $59.54          $59.44            $57.40

Class B @   $52.90          $50.44            $48.62

Class C @   $47.19          $46.66            $43.68 

 

TOTAL OFFICE MARKET STATISTICS  

 Markets Defined:

Midtown: Grand Central, Plaza, Columbus Circle, Times Square, Penn Station/Garment Center, Murray Hill and United Nations Plaza.

Midtown South: Gramercy Park, Chelsea, Hudson Square, Greenwich Village and SOHO.

Downtown: Financial, Insurance, City Hall, Tribeca and the World Trade Center.

Uptown: Upper East Side, Upper West Side,  and Harlem/North Manhattan.

 

INDIVIDUAL MARKET STATISTICS

 

 

 

 LARGEST OFFICE LEASES SIGNED

1,066,132 RSF renewal lease by Credit Suisse at 11 Madison Avenue.

943,438 RSF sale-leaseback by Time Warner at 60 Columbus Circle (TW will move to 30 Hudson Yards in 2018).

695,714 RSF new lease by Time Publishing Ventures at Two World Financial Center.

Media and tech companies continue to add jobs and space- Google is expanding into 76,361 RSF at Chelsea Market.

 

Office Rental Rates in NY… strategies for controlling your budget

(1) Space Reduction and Redesign: Businesses are reducing the size of their offices by modifying the design and paring down the area occupied by each employee. Use our office space calculator to estimate your essential requirement. Hourly or daily rentals at off-site business centers for part-time staff and conferences is an option. 

(2) Flex Work and Telecommuting: Flexible work schedules may allow two or more employees to utilize a specific work area. Where practical utilize telecommuting.

(3) Relocation: Downtown has many quality buildings for lease at a 20- 35% discount over midtown. The Lower Manhattan Commercial Revitalization Program offers total rent credits of $10 PSF for qualifying businesses.

 

OFFICE RENTAL RATES IN NY…Best Strategy for Leasing space

With over 15 years of experience providing NO FEE Tenant Representation, Cogent Realty Advisors will secure affordable office rental rates in NY for your business. Contact Mitchell Waldman today: (212) 509-4049.