We're No. 7! City cracks list of world's 10 priciest
[RealDeal] 8/06
Rents rose so high and vacancy rates dipped so low in the first half of 2006 that some analysts wonder aloud now whether the pricing in the Manhattan commercial market has shifted fundamentally -- and permanently -- upward.
Second-quarter numbers compiled by brokerage Cushman & Wakefield show 20 Manhattan leases were signed in the first six months of 2006 with asking rents of above $100 a foot; just 10 were signed last year. Also, there were 23 Midtown lease deals between 50,000 and 100,000 square feet of space inked in the first half of this year, three more than in all of 2005.
This leasing helped drive the overall vacancy rate in Midtown to 6.9 percent in the second quarter, down from 7.8 percent in the first quarter.Average Manhattan asking commercial rents stood at $43.46 a square foot for the three months ending June 30, according to Cushman & Wakefield, the highest level in nearly four years.
The average asking rent for Class A space in Midtown hit more than $56 a foot in the second quarter, its highest amount since at least 2002.
These moves helped place Manhattan 7th among the world's 10 most expensive cities to lease office space, according to an analysis by Cushman & Wakefield. Manhattan, the most expensive location in North America, was the only city in the Western Hemisphere ranked among the 10 priciest this year; it ranked 11th last year.
Manhattan could well keep moving up the list, as the city's economy shows no signs of slowing. The city's May unemployment rate was its lowest in 18 years and demand remains steady for commercial space, with the overall vacancy rate dipping to a five-year low of 7.8 percent in the second quarter.
Rents rose so high and vacancy rates dipped so low in the first half of 2006 that some analysts wonder aloud now whether the pricing in the Manhattan commercial market has shifted fundamentally -- and permanently -- upward.
Second-quarter numbers compiled by brokerage Cushman & Wakefield show 20 Manhattan leases were signed in the first six months of 2006 with asking rents of above $100 a foot; just 10 were signed last year. Also, there were 23 Midtown lease deals between 50,000 and 100,000 square feet of space inked in the first half of this year, three more than in all of 2005.
This leasing helped drive the overall vacancy rate in Midtown to 6.9 percent in the second quarter, down from 7.8 percent in the first quarter.Average Manhattan asking commercial rents stood at $43.46 a square foot for the three months ending June 30, according to Cushman & Wakefield, the highest level in nearly four years.
The average asking rent for Class A space in Midtown hit more than $56 a foot in the second quarter, its highest amount since at least 2002.
These moves helped place Manhattan 7th among the world's 10 most expensive cities to lease office space, according to an analysis by Cushman & Wakefield. Manhattan, the most expensive location in North America, was the only city in the Western Hemisphere ranked among the 10 priciest this year; it ranked 11th last year.
Manhattan could well keep moving up the list, as the city's economy shows no signs of slowing. The city's May unemployment rate was its lowest in 18 years and demand remains steady for commercial space, with the overall vacancy rate dipping to a five-year low of 7.8 percent in the second quarter.
posted by rjgny2004 at 1:15 PM
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