Class A properties outperform Class B properties in April, JLL reports

TRD New York /
May.May 10, 2010 02:24 PM
alternate textSource: Jones Lang LaSalle

The overall office leasing market remained flat in Manhattan last month with Class A properties showing the most improvement and Class B properties continuing to lag, according to a new report covering April from commercial firm Jones Lang LaSalle (see full report below).

Asking rents in Class A properties rose in six of eight submarkets in Midtown and Downtown while Class B rates dropped in five of those eight areas, the report shows.

The uptick in asking rents in select submarkets is a sign of market stabilization, company vice president of research James Delmonte said, but not of a sustained period of rent increases.

“I think the story is about the flattening of rents. There will be minor fluctuations in either direction [over the coming months]. [But] if you look at the trend it will just be flat,” he said.

Asking rents rose in Class A properties in submarkets such as Penn Plaza and Times Square in Midtown and fell in Class B submarkets such as the Financial District in Downtown and Grand Central in Midtown.

For all Manhattan Class A buildings, average asking rents fell by 10 cents per foot to $58.74 per square foot and the vacancy rate fell by .2 points to 12.4 percent. For all Class B properties, asking rents fell by 40 cents to $44.06 per foot and the vacancy rate rose by .2 points to 13.1 percent.

For Manhattan Class A and Class B combined, the average asking rents fell to $52.40 per square foot from $52.76 per foot in March, and the vacancy rate remained even at 12.7 percent, JLL figures show.

Meanwhile, commercial services firm Cassidy Turley, formerly known as Colliers ABR, reported today that the overall vacancy rate in Manhattan fell in April by .3 points to 13.2 percent, and that average asking rents declined to $48.82 per square foot from $50.41 per square foot.
Jll Pulse NYC 04


Related Articles

arrow_forward_ios
A rendering of 556 West 22nd Street (Photo by BASIS Independent Schools)

Private school to expand in former Chelsea Art Museum building

Private school to expand in former Chelsea Art Museum building
Knotel CEO Amol Sarva and Sprinklr CEO Ragy Thomas with 29 West 35th Street (Sarva via Sasha Maslov; Getty; Google Maps)

Manhattan landlords sue Knotel, Sprinklr for missing rent

Manhattan landlords sue Knotel, Sprinklr for missing rent
Companies are relying on surveys and other data points to determine who will come back to offices first. (iStock)

How do companies decide who should return to offices first? It’s tricky

How do companies decide who should return to offices first? It’s tricky
A rendering of the Climate Solutions Center with Trust for Governors Island CEO Clare Newman and Mayor de Blasio (Rendering via WXY architecture + urban design/bloomimages; Governor's Island; Getty)

Going green: Governors Island could soon house climate center

Going green: Governors Island could soon house climate center
The Real Deal founder and publisher Amir Korangy and Massey Knakal founder Bob Knakal

JLL’s Bob Knakal on the future of New York

JLL’s Bob Knakal on the future of New York
Regus CEO Mark Dixon with 175 Pearl Street in Brooklyn, 1325 Sixth Avenue and 1501 Broadway (Regus, Google Maps)

Regus throws 6 NYC locations into bankruptcy

Regus throws 6 NYC locations into bankruptcy
Onyx Equities' Jonathan B. Schultz (left) and John Saraceno, Jr. with 7 Sylvan Way (right) and 8 Campus Drive in New Jersey (Onyx Equities)

Onyx Equities acquires massive New Jersey office portfolio for $160M

Onyx Equities acquires massive New Jersey office portfolio for $160M
Following pressure from business leaders, Mayor Bill de Blasio calls for the return to the office (Getty)

De Blasio calls for return to the office, restores trash pickups

De Blasio calls for return to the office, restores trash pickups
arrow_forward_ios

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

Loading...