The Real Deal New York

Office penthouses languish on market

October 03, 2012 01:30PM

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599 Lexington Avenue (center)

On the residential side, penthouses have sold like hotcakes in 2012. But commercial penthouses are not moving at nearly the same rate, the New York Times reported.

More than half a dozen office penthouse spaces in premiere Midtown buildings have sat unoccupied for more than a year, the Times said. The average asking rent for an office penthouse in that market is $158 per square foot, according to numbers from CBRE, though brokerages have begun to offer discounts.

The tenants that usually snap up these impressive spaces — many of which offer views of most or all noted landmarks in the New York City skyline — are usually hedge funds or wealth managers, the Times said.

“Penthouses aren’t one size fits all,” Andrew Levin, a senior vice president of leasing for Boston Properties, which is leasing a penthouse space at 599 Lexington Avenue, told the Times. “They’re one size fits one.” [NYT] – Guelda Voien

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