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

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

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

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

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Rendering of the Tokyo Tokiwabashi project (Courtesy of Mitsubishi)

Mitsubishi unveils design for Japan’s tallest skyscraper

Mitsubishi unveils design for Japan’s tallest skyscraper
(Photo courtesy of Winkworth)

London’s so-called skinniest home hits the market

London’s so-called skinniest home hits the market
(iStock)

Déjà vu: New home sales hit 14-year high in August

Déjà vu: New home sales hit 14-year high in August
Neiman Marcus at Hudson Yards and Geoffroy van Raemdonck (Getty)

Neiman Marcus exits bankruptcy $4B lighter

Neiman Marcus exits bankruptcy $4B lighter
Charles Rettig, Commissioner of the IRS (Getty)

Opportunity Zone rule change seeks to entice foreign investors

Opportunity Zone rule change seeks to entice foreign investors
arrow_forward_ios

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

Loading...