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

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