Office penthouses languish on market

TRD New York /
Oct.October 03, 2012 01:30 PM

On the residential side, penthouses have sold like hotcakes in 2012. But commercial penthouses are not moving at nearly the same rate, the New York Times reported.

More than half a dozen office penthouse spaces in premiere Midtown buildings have sat unoccupied for more than a year, the Times said. The average asking rent for an office penthouse in that market is $158 per square foot, according to numbers from CBRE, though brokerages have begun to offer discounts.

The tenants that usually snap up these impressive spaces — many of which offer views of most or all noted landmarks in the New York City skyline — are usually hedge funds or wealth managers, the Times said.

“Penthouses aren’t one size fits all,” Andrew Levin, a senior vice president of leasing for Boston Properties, which is leasing a penthouse space at 599 Lexington Avenue, told the Times. “They’re one size fits one.” [NYT] — Guelda Voien

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