Inflation outpaces NYC office rents

New York /
Sep.September 04, 2012 10:00 AM

Thanks to the reduction in office rents following the real estate crash, the price of leasing a Manhattan office has not kept pace with inflation, according to a Jones Lang LaSalle report cited by the Wall Street Journal.

The average Manhattan office rent in 2012 is $55 per square-foot, up 22 percent from 2002, when the average rent was $45 per foot. However, had lease prices kept pace with inflation, they would be averaging approximately $60 per foot this year, according to JLL.

The Journal noted that the rate of rent increases far surpassed the rate of inflation between 2007 and 2009, but that now appears to be more of a blip than a benchmark to which rents should be expected to return.

“Rents are cheap. Now is the time to strike,” Tristan Ashby, head of research for the New York office of Jones Lang LaSalle, told the Journal. [WSJ] — Adam Fusfeld


Related Articles

arrow_forward_ios
198 Scholes Street, 65 Kent Avenue, 506 DeKalb Avenue and 11 Gunther Place (Illustration by the Real Deal with Getty, Google Maps)
Avi Philipson deal to acquire All Year portfolio is back on
Avi Philipson deal to acquire All Year portfolio is back on
From left: McSam Hotel Group's Sam Chang and SL Green's Marc Holliday with 711 Seventh Avenue  (Getty, Google Mpas, SL Green)
Times Square hotel developer sues neighbors over delayed demolition
Times Square hotel developer sues neighbors over delayed demolition
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
A photo illustration of the proposed Lower Platte River Corridor (Getty, Plan Preserve Play NE)
Nebraska lawmakers mull digging $1B recreation lake
Nebraska lawmakers mull digging $1B recreation lake
From left: Adam Altman, Martin Nussbaum, Brian Cooper, Joe Koicim
Photos: Inside Slate Property Group’s holiday party at Casa Cipriani
Photos: Inside Slate Property Group’s holiday party at Casa Cipriani
Illustration of Stefan Soloviev (HaydenSoloviev, CC BY-SA 4.0, via Wikimedia Commons, Getty)
Soloviev bets long-dormant Midtown East site in casino sweepstakes
Soloviev bets long-dormant Midtown East site in casino sweepstakes
CHIP's Jay Martin and HCR Commissioner RuthAnne Visnauskas (Getty)
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
PulteGroup's Ryan R. Marshall and RedFin's Glenn Kelman (PulteGroup, RedFin, Getty)
Wall Street is bidding up housing stocks again
Wall Street is bidding up housing stocks again
arrow_forward_ios

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

Loading...