NYC office rents could be eclipsed by D.C.

New York /
Jan.January 08, 2010 11:28 AM

While New York City may be known for its pricey office space, that
paradigm could change soon. Washington, D.C. is inching closer to the
Big Apple in terms of price per square foot. The two cities have long-competed for the dubious title of most expensive city for office space, the Wall Street Journal reported, but rarely have the two been so closely neck-in-neck. While New York office
space’s price per square foot declined almost 20 percent
year-over-year, according to fourth-quarter data released by research
firm Reis, average rents in Washington dropped just 3 percent. In the
fourth quarter, New York City’s average office space rents hovered
around $45 per square foot in the fourth quarter, according to Reis,
while Washington rents were approximately $42 per square foot. The
disparity in office performance is based in large part on the two
cities’ divergent industries, according to Robert Bach, a chief
economist for Grubb & Ellis. “The financial crisis hit New York hard,
which is why it’s down so much, whereas the government is one of the
few sectors that has actually added jobs,” Bach said. This could lead
to an even tighter race between the two cities, price-wise, according
to Reis’ report. The firm estimates that Washington will actually
exceed the Big Apple in its average rent per square foot by about $.20
by the end of 2010.


Related Articles

arrow_forward_ios
From left: Metro Loft Management founder Nathan Berman, Silverstein Properties chairman Larry Silverstein, and 55 Broad Street (Metro Loft, Silverstein Properties, LoopNet)
Silverstein, Metro Loft pick up Rudin’s 55 Broad Street for $180M
Silverstein, Metro Loft pick up Rudin’s 55 Broad Street for $180M
Savills' Jim Wenk (LinkedIn, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Office space up for sublease back on the rise
Office space up for sublease back on the rise
645 Madison Avenue (Google Maps, iStock)
Private equity firm tightens grip on distressed Madison Ave building
Private equity firm tightens grip on distressed Madison Ave building
Empty boxes: As remote work endures, many office buildings are losing value
Empty boxes: As remote work endures, many office buildings are losing value
Empty boxes: As remote work endures, many office buildings are losing value
v
Rising interest rates weighing on Vornado’s earnings, Steve Roth says
Rising interest rates weighing on Vornado’s earnings, Steve Roth says
David Avgi, Ryan Serhant, Michael Martin and Justin Fichelson with Avenue 8 office at 900 Broadway (Nicole Franzen, LinkedIn, Ryan Serhant, iStock)
Selling homes? Why use an office?
Selling homes? Why use an office?
ZG, Rialto buying former Santander building for $105M
ZG, Rialto buying former Santander building for $105M
ZG, Rialto buying former Santander building for $105M
Renovate or bust: NYC offices face risk of obsolescence
Renovate or bust: NYC offices face risk of obsolescence
Renovate or bust: NYC offices face risk of obsolescence
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...