Midtown South is proving to be a very popular neighborhood for office space.
Average asking rents for offices in the neighborhood hit $83.14 per square foot during the third quarter, according to the Wall Street Journal, citing data from JLL. This was the 11th consecutive quarter of growth and its highest point since 1995.
Owners of trophy towers in the neighborhood are also fetching a solid premium, with average asking rents hitting $94.61 per square foot, compared to $83.38 per square foot in Midtown.
JLL defines Midtown South as stretching from Canal Street to 30th Street, and its vacancy rate dropped to 5.4 percent during the third quarter, good enough for the country’s tightest central business district. It is attracting a wide range of tenants, ranging from advertising and media firms to insurance and financial services companies.
Roughly 741,000 square feet of office space should be completed in the fourth quarter, so the area should soon have a bit more supply. [WSJ] – Eddie Small