City’s office rents hit highest level since 2008: report

New York /
Jan.January 06, 2014 11:50 AM

Growth in the technology sector combined with low inventory sent New York City’s average office rents in the fourth quarter to the highest level seen since late 2008, according to a new report from real estate research firm Reis.

The average asking rent was $61.75 per square foot, a year-over-year increase of 4.2 percent and the highest number seen since since the fourth quarter of 2008, when average asking rents stood at $64.40 per square foot.

The city’s office vacancy rate was 9.9 percent in the fourth quarter of 2013, Reis’ data show, according to the Wall Street Journal. This was the lowest vacancy rate among major U.S. cities, but a slight increase from the 9.7 percent seen in New York City in the third quarter.

Reis economist Ryan Severino told the newspaper that “New York is trying to become more of a tech center and an incubator,” and that push was reflected in the uptick in leasing activity by tech firms in Midtown. [WSJ]Hiten Samtani


Related Articles

arrow_forward_ios
SL Green CEO Marc Holliday, Chelsea Piers Fitness CEO David Tewksbury and One Madison Avenue (Getty, SL Green)
Chelsea Piers is coming to SL Green’s One Madison
Chelsea Piers is coming to SL Green’s One Madison
Durst Organization Chairman Douglas Durst, Venable LLP Chairman Stuart Ingis and 151 West 42nd Street (Getty, Venable)
Durst’s One Five One inks 158K sf lease for law firm tenant
Durst’s One Five One inks 158K sf lease for law firm tenant
Stripes founder Ken Fox and a rendering of 40 10th Avenue (Stripes, Neoscape)
Private equity firm carves out 14K sf at Aurora’s Solar Carve building
Private equity firm carves out 14K sf at Aurora’s Solar Carve building
iCapital Network CEO Lawrence Calcano and 60 East 42nd Street (iCapital, ESRT)
Fintech firm doubles down at ESRT’s One Grand Central
Fintech firm doubles down at ESRT’s One Grand Central
How NYC’s top real estate law firms got creative in an unusual year
How NYC’s top real estate law firms got creative in an unusual year
How NYC’s top real estate law firms got creative in an unusual year
Midtown South leads Manhattan’s office market recovery: report
Midtown South leads Manhattan’s office market recovery: report
Midtown South leads Manhattan’s office market recovery: report
195 Broadway in Manhattan NYC, Orchard Technologies CEO Court Cunningham and L&L Holding Company CEO David Levinson (Google Maps, Orchard, L&L)
Orchard Technologies leases 107K sf at L&L’s 195 Broadway
Orchard Technologies leases 107K sf at L&L’s 195 Broadway
40 10th Avenue
Aurora’s Solar Carve office building scores $300M refi
Aurora’s Solar Carve office building scores $300M refi
arrow_forward_ios

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

Loading...