While parts of the commercial real estate market might be reaching a peak, there is still “room to run” for office rents, CBRE’s Mary Ann Tighe said during Bloomberg’s Market Makers.
“Retail rents are extraordinary,” Tighe said, “and I think we’re going to see some pushback from retailers on that.” But, she added, there’s room to grow where office deals are concerned, as companies are more willing to sign large leases.
Average asking rent was $67.05 per square foot in 2014, according to Bloomberg.
Most significant are the technology, advertising and media firms who have signed major leases in 2014. Those companies — all unknown 10 or 15 years ago — are signing leases that are 100,000 square feet or more, Tighe said.
Tighe also discussed Times Square, describing the area as a “victim of its own success.” While congestion due to an increased number of visitors has made it a less desirable place for offices to settle down, Tighe said she is not worried about the city’s most famous square and the new office product that is becoming available there.
“The product itself is good enough,” she said. [Bloomberg] — Claire Moses