New lease deals dominate Manhattan office market in 2014

Fresh signings accounted for 63 percent of inked space: CompStak

TRD New York /
Jan.January 14, 2015 11:30 AM

It may not be out with the old, but it’s certainly in with the new. Throughout Manhattan, new leases comprised a larger chunk of all office deals in 2014, rising to 63 percent from 55 percent year-over-year based on square footage leased. That’s according to CompStak’s latest rent report, provided exclusively to The Real Deal.

The high-profile new leases included Sony’s 525,000-square-foot deal at the Sapir Organization and CIM Group’s 11 Madison Avenue, and law firm White & Case’s deal for 440,000 square feet at the Rockefeller Group’s McGraw-Hill Building.

Companies in the technology, advertising, media and information sectors, collectively known as TAMI tenants, continued to have a big impact. Their presence was felt particularly in Downtown, where they occupied a record 43 percent of all the area’s office space in 2014, according to CompStak.

TAMI tenants continued to head Downtown to find relatively affordable Class A office space, including Time Inc., which took 700,000 square feet at Brookfield Place. Downtown Class A effective rents averaged $41 per square foot in 2014, according to CompStak. Meanwhile, Class B effective rents in the submarket were a little more than $35 per square foot.

The effective rent for Class B buildings in Midtown climbed to $49 per square foot from $44.5 per square foot year-over-year. Midtown South’s Class B effective rents also grew – to $52 per square foot from $47.8 per square foot in 2013.

“The high Midtown South Class B rents drove tenants to other markets with a large class B inventory such as Penn Station and Times Square,” the report stated. “This is a 2014 trend, not just a fourth-quarter trend.”


Related Articles

arrow_forward_ios
An aerial view One World Trade Center in Lower Manhattan (Credit: iStock)

On anniversary of 9/11, the World Trade Center office market is now helping propel Downtown

Clockwise from top left: 733 Third Avenue, 24-01 44th Road in Long Island City, 83 Maiden Lane, and 1745 Broadway (Credit: Google Maps)

These were NYC’s top office leases in August

Clockwise from left to right: 50 Hudson Yards, Farley Post Office redevelopment, 1 Madison Avenue, and Apple CEO Tim Cook (Credit: Hudson Yards, Skanska, Google Maps, and Getty Images)

Apple on the hunt for enormous Manhattan office space

Clockwise from left: 55 Water Street, 195 Broadway, 220 East 42nd Street, 550 Washington Street (Credit: Wikipedia, L&L Holding, SL Green, Curbed)

These were NYC’s top office leases in July

Amazon CEO Jeff Bezos (Credit: Getty Images)

Here are Amazon’s current office and warehouse holdings in NYC — and where it could set up shop next

New heights for Everest as insurer inks North Jersey’s largest lease deal of 2019

French advertising giant Publicis doubles down on Hudson Square with 960K sq ft renewal-expansion

NYC developer looks to double down on WWE’s new Connecticut home

arrow_forward_ios