Low Class A office vacancy rate emboldens landlords to push for higher rents

As the vacancy rate for Manhattan Class A office space continues to drop, landlords are trying to see how far they can push up asking rents, according to Crain’s. They are holding back on their most sought-after properties in order to achieve higher rents.

According to recent data from Cassidy Turley, the Class A vacancy rate dropped to 10.8 percent for June, down a full percentage point from the same period last year. Yet, the number of buildings with zero vacancies dropped — from 48 to 42. Only 23 Midtown office buildings are now fully occupied, Crain’s said.

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“Landlords are looking to see exactly how far up they can push the terms,” said Robert Sammons, Cassidy’s vice president of research, in terms of explanation. “They already see a good number of tenants in the market competing for important blocks of space.” [Crain’s]