Midtown Manhattan’s Third Avenue stretch, the city’s weakest office submarket as recently as 2012, is in the middle of a revival, with vacancies low and rents steadily climbing.
Class A asking rents on Third Avenue are up to $64.20 per square foot in the third quarter, up from $60.71 in the second quarter, according to JLL. Overall rents, including Class A and Class B properties, have climbed to $61.25 per square foot after years in the $50s.
The overall vacancy rate in the submarket dropped to 7.1 percent, a significant drop from the 11.1 percent rate at the end of 2014 and 14.4 percent in the first quarter of 2013. The Class A office vacancy rate is around 6.9 percent. Those are some of the lowest rates in the city, according to JLL.
In April, advertising giant Interpublic Group added 112,000 square feet to its lease at Vornado Realty Trust’s 909 Third Avenue, for a total of about 330,000 square feet. In February, Bloomberg took 150,000 square feet at SL Green’s 919 Third Avenue. [NYP] – Ariel Stulberg