search

The Real Deal Logo

Trending

Evictions surge at Hialeah’s luxury apartment projects Shoma Village, Pura Vida and ManorEvictions surge at Hialeah’s luxury apartment projects Shoma Village, Pura Vida and ManorMiami Wilds developers countersue Miami-Dade over scuttled water parkMiami Wilds developers countersue Miami-Dade over scuttled water parkLawmakers reach sweeping housing deal with “good cause eviction,” new 421aLawmakers reach sweeping housing deal with “good cause eviction,” new 421aLenders look to sell Savanna’s distressed 360 LexingtonLenders look to sell Savanna’s distressed 360 Lexington
New York

Vacancies are down, rents are up on Third Avenue

Class A availability in Midtown submarket was 6.9 percent in Q3

919 Third Avenue 909 Third Avenue
From left: 919 Third Avenue and 909 Third Avenue in Midtown

Midtown Manhattan’s Third Avenue stretch, the city’s weakest office submarket as recently as 2012, is in the middle of a revival, with vacancies low and rents steadily climbing.

Class A asking rents on Third Avenue are up to $64.20 per square foot in the third quarter, up from $60.71 in the second quarter, according to JLL. Overall rents, including Class A and Class B properties, have climbed to $61.25 per square foot after years in the $50s.

Sign Up for the undefined Newsletter

The overall vacancy rate in the submarket dropped to 7.1 percent, a significant drop from the 11.1 percent rate at the end of 2014 and 14.4 percent in the first quarter of 2013. The Class A office vacancy rate is around 6.9 percent. Those are some of the lowest rates in the city, according to JLL.

In April, advertising giant Interpublic Group added 112,000 square feet to its lease at Vornado Realty Trust’s 909 Third Avenue, for a total of about 330,000 square feet. In February, Bloomberg took 150,000 square feet at SL Green’s 919 Third Avenue. [NYP] – Ariel Stulberg