Parts of commercial market feel like “a peak”: VIDEO

While retail prices are "extraordinary," office rents still have room to grow: Mary Ann Tighe

New York /
Mar.March 03, 2015 09:15 AM

While parts of the commercial real estate market might be reaching a peak, there is still “room to run” for office rents, CBRE’s Mary Ann Tighe said during Bloomberg’s Market Makers.

“Retail rents are extraordinary,” Tighe said, “and I think we’re going to see some pushback from retailers on that.” But, she added, there’s room to grow where office deals are concerned, as companies are more willing to sign large leases.

Average asking rent was $67.05 per square foot in 2014, according to Bloomberg.

Most significant are the technology, advertising and media firms who have signed major leases in 2014. Those companies — all unknown 10 or 15 years ago — are signing leases that are 100,000 square feet or more, Tighe said.

Tighe also discussed Times Square, describing the area as a “victim of its own success.” While congestion due to an increased number of visitors has made it a less desirable place for offices to settle down, Tighe said she is not worried about the city’s most famous square and the new office product that is becoming available there.

“The product itself is good enough,” she said. [Bloomberg] — Claire Moses 


Related Articles

arrow_forward_ios
(Getty)
Manhattan retail market awaits recovery as vacancies rise in Q1
Manhattan retail market awaits recovery as vacancies rise in Q1
About 17.3 percent of Manhattan office space is available for lease, the most in decades. (iStock)
Manhattan office market’s 25% drop is ominous sign for landlords
Manhattan office market’s 25% drop is ominous sign for landlords
Douglas Durst with 1133 Avenue of the Americas (left) and 114 West 47th Street (Google Maps, Getty)
Durst refinances two Midtown buildings with $1.1B CMBS loan
Durst refinances two Midtown buildings with $1.1B CMBS loan
Rudin Management CEO Bill Rudin and 3 Times Square (Getty, FXCollaborative)
Rudin taps Cushman to market 3 Times Square, plans makeover
Rudin taps Cushman to market 3 Times Square, plans makeover
From left: Vornado Realty Trust’s 11 Penn Plaza and Apple’s Tim Cook, The Farley Post Office building and Facebook’s Mark Zuckerberg, Durst Organization’s One Five One and ByteDance CEO Zhang Yiming (Getty, VNO, SOM, Durst)
Big Tech firms led office leasing in 2020
Big Tech firms led office leasing in 2020
345 Park Avenue and 787 Eleventh Avenue (Photos via Google Maps and Rafael Viñoly)
Manhattan office availability hits all-time high in Q1
Manhattan office availability hits all-time high in Q1
315 West 35th Street with Isaac Chetrit and DJ Dashti (Google Maps, Linkedin, iStock)
Chetrit to open flex-office location near Penn Station
Chetrit to open flex-office location near Penn Station
CBRE CEO Robert Sulentic and One World Trade Center (CBRE, iStock)
Port Authority taps CBRE to manage WTC
Port Authority taps CBRE to manage WTC
arrow_forward_ios

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

Loading...