Midtown South office rents gain on Midtown

TRD New York /
May.May 21, 2012 11:00 AM

In an indication of the Midtown South submarket’s continued strength relative to the Midtown submarket, Minskoff Equities’ new office development will have asking rents between $88 and $115 per square foot, Bloomberg News reported. Despite the general malaise in the commercial leasing market, the Midtown South area continues to diverge from the rest of the marketplace, Bloomberg said — numbers that line up with The Real Deal‘s previous reports.

Minskoff principal Ed Minskoff says his new development, on Astor Place between Cooper Square and Third Avenue, is seeing tons of interest from “lots of very, very exciting companies,” according to Bloomberg.

Asking rents for Midtown South’s class A spaces averaged $66.74 per square foot in April, an increase of 16 percent since the fourth quarter of 2011, Bloomberg said. Meanwhile, in Midtown, Class A rents rose only 1 percent. The depressed rent growth in Midtown is due to the submarket’s dependence on financial services tenants.

“What’s happened is very quickly, before our eyes, Midtown South rents are rising higher than for many buildings in Midtown,” David Falk, president at Newmark Knight Frank, told Bloomberg News. “Buildings where maybe you’d pay $50 a foot are now getting low $60s.” [Bloomberg]

Related Articles

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Global City Development principal Brian Pearl (Credit: iStock)

The $2.5B plan to lure millennials into new houses

Finger and Finger principal Kenneth Finger and landlord activist Jeff Hanley with Westchester (Credit: iStock)

Westchester group lobs its own constitutional challenge to New York’s rent law

Kings Plaza Shopping Center and JPMorgan's Jamie Dimon 

Macerich lands nearly $500M refi for Kings Plaza Shopping Center

WeWork's Artie Minson and Managed by Q's Dan Teran 

WeWork in talks to sell off Managed by Q to free up some cash

(Credit: iStock)

What you need to know about investing in healthcare real estate