Fifth Avenue is the 2nd priciest US office market: report

Menlo Park’s Sand Hill takes the top spot

New York /
Dec.December 11, 2017 02:05 PM

The GM Building and 9 West 57th Street

Office Rents On Fifth Avenue are the second-most expensive in the country, according to a new report from JLL.

Average asking rents on the Midtown stretch between 50th and 61st streets clocked in at $116.04 per square foot, and at the top end of the range reached $185 per square foot, the Wall Street Journal reported.

“When you think about Fifth Avenue buildings, they’re comprised of a subset that are all proximate to the park [Central Park] and have stellar park views,” Mo Beler, a managing director at JLL, told the newspaper.

California’s Sand Hill Road in Menlo Park came in as the most expensive at an average asking price of $119.38 per square foot, according to JLL’s 2017 Most Expensive Streets report.

Fifth Avenue – home to premiere office addresses like the General Motors Building at 767 Fifth Avenue, 9 West 57th Street and 745 Fifth Avenue – had a vacancy rate during the third quarter of 11.9 percent, according to JLL. That’s higher than the overall rate for Manhattan of 10.2 percent, but Beler said the roughly 2 percent difference is normal as longtime owners can afford to keep space vacant in order to wait for high-paying tenants.

Still, Fifth Avenue and Midtown in general are facing competition as tenants flock to places like the Far West Side. Worldwide, Midtown ranks as the globe’s fourth-most expensive office market, with Hong Kong taking the top spot. [WSJ]Rich Bockmann


Related Articles

arrow_forward_ios
Multifamily sector beating the odds

Multifamily sector beating the odds

Multifamily sector beating the odds
The home improvement retailer will stay in it's Flatiron location (Google Maps)

Home Depot extends lease for Flatiron store

Home Depot extends lease for Flatiron store
Hewlett Packard Enterprise Co. CEO Antonio Neri (Unsplash; Hewlett Packard Enterprise)

Hewlett Packard Enterprise leaves Silicon Valley for Texas

Hewlett Packard Enterprise leaves Silicon Valley for Texas
Convention centers are a losing proposition for private developers, but local governments see them as a way to attract business tourism. (iStock)

Convention centers boom despite shows going virtual

Convention centers boom despite shows going virtual
Charlie Kushner and Laurent Morali with Commons at White Marsh Apartments in Maryland (Photos via Sasha Maslov and CommonsatWhiteMarsh)

Kushner looks to unload multifamily properties for $800M

Kushner looks to unload multifamily properties for $800M
Having learned from missed opportunities a decade ago, family offices are strategically looking for distress opportunities in real estate (iStock)

Family offices are gearing up to pounce on distressed real estate

Family offices are gearing up to pounce on distressed real estate
Slate Property's CEO Martin Nussbaum (West End 87)

Scale Lending originates $38M inventory loan for unsold UWS condos

Scale Lending originates $38M inventory loan for unsold UWS condos
Knotel CEO Amol Sarva (Sasha Maslov, Knotel, iStock)

Evictions, unpaid vendors and back rent: Lawsuits mounting against Knotel

Evictions, unpaid vendors and back rent: Lawsuits mounting against Knotel
arrow_forward_ios

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

Loading...