NYC to return to top of U.S. office market

New York City office rents will grow even stronger for the remainder of 2011 and the city will reclaim its number one ranking among the nation’s office markets, commercial real estate firm Marcus & Millichap suggested in a report released today. Similar to reports by Colliers International and Cassidy & Turley released yesterday, Marcus & Millichap indicated that job recovery, which will include 45,000 new office-using positions, combined with just 1.2 million square feet of new construction in New York City (more than half of which stems from Two Gotham Center in Queens) will push rents up at least 5 percent this year. The report predicts asking rents will rise 5 percent to $57.46 per square foot, and effective rents will increase 7 percent to $47.47 per square foot. These figures will push New York City to the nation’s top office market after falling to sixth last year. TRD