Read the entire Q1 2014 Effective Rent Report, Manhattan Office here:
See the below summary for a quick glance:
- Overall: Strong start of the year for the Manhattan office market overall. The three Manhattan submarkets all saw leases signed with the highest rents since 2008, and the overall average effective rent for Manhattan increased $2.61 to $54.94 PSF.
- Midtown: The average class A effective rent lingered in the mid-$60s PSF in the first quarter of 2014. From the year over year perspective, effective rent in Midtown is still on the rise with an 8.1% growth comparing to same period last year.
- Midtown South: Midtown South had a spectacular quarter with record-breaking high-rent deals. The average class A effective rent passed $70 PSF and the overall average effective rent in Midtown South soared to $54.67 PSF. On the other hand, the average concession package value also climbed to 8.4% of total lease value. The last time it reached over 8% was the fourth quarter of 2012, after which, the effective rent of the following quarter dropped 4%.
- Downtown: Downtown’s trophy leasing market kept a lower profile this quarter. As a result, overall average effective rent dropped to $36.46 PSF, virtually the same level as in Q3 2013. New leases comprised the majority of total leased spaces in this quarter and value-seeking firms relocating from Midtown and Midtown South played a big part of it.