Office rents decrease to $59 psf on Park Ave.

New York /
Mar.March 07, 2011 02:05 PM

Thanks to the economic downturn, rents for office space on Park Avenue declined to $59 a square foot in the fourth quarter of 2010, compared to $118 a square foot in the first quarter of 2008, according to a new study by Jones Lang LaSalle. The $59 decrease in Park Avenue rents was the greatest of any submarket in Midtown. On Sixth Avenue, for example, average rents fell only $35, according to the study. “It just happened to be that a lot of the industry that was most impacted by the recession was financial services, and financial services in Midtown had big chunks of space on Park Avenue,” Steven Durels, who handles leasing for SL Green, which owns 100 Park Avenue, told the Wall Street Journal. “And some of those tenants dumped their space at discounted rents because they wanted to mitigate their carrying costs.” However, rents throughout the city have started to improve as businesses have begun hiring again, boosting job growth. Deals for space at some of Park Avenue‘s toniest addresses are regularly topping $100 a square foot. But office leasing volume still remains below the levels hit during the boom years. Midtown’s overall vacancy rate was at 11.7 percent at the end of last year, compared with 5.1 percent at the end of 2007, according to Reis. The submarket that includes parts of Upper Park Avenue ended 2010 with a 13.9 percent vacancy rate, compared with a low of 4.1 percent in the fourth quarter of 2007. [WSJ]


Related Articles

arrow_forward_ios
The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)
SL Green puts Daily News building up for sale
SL Green puts Daily News building up for sale
SL Green snags private-equity firm at One Vanderbilt
SL Green snags private-equity firm at One Vanderbilt
SL Green snags private-equity firm at One Vanderbilt
SL Green’s locks in big bank lease at Hudson Yards redevelopment site
SL Green’s locks in big bank lease at
Hudson Yards redevelopment site
SL Green’s locks in big bank lease at
Hudson Yards redevelopment site
Safehold snares ground lease under Ron Burkle’s troubled NoMad Hotel
Safehold snares ground lease under Ron Burkle’s troubled NoMad Hotel
Safehold snares ground lease under Ron Burkle’s troubled NoMad Hotel
29 West 34th Street and Jeff Sutton of Wharton Properties (Google Maps)
Jeff Sutton will get $9M back from Geox
Jeff Sutton will get $9M back from Geox
CMBS issuance is set to break Great Financial Crisis record, report
CMBS set to break Financial Crisis record
CMBS set to break Financial Crisis record
Aby Rosen dodges liability at Gramercy Park Hotel
Aby Rosen dodges liability at Gramercy Park Hotel
Aby Rosen dodges liability at Gramercy Park Hotel
NYCB CEO Thomas Cangemi (Getty, Cangemi)
NYCB says multifamily loans in good shape, not endangered by rent law
NYCB says multifamily loans in good shape, not endangered by rent law
arrow_forward_ios

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

Loading...