Asking rents for Midtown South office space skyrocket during Q3

Average asking rents hit $83.14 per square foot, the 11th consecutive quarter of growth

TRD New York /
Oct.October 12, 2018 10:30 AM

Midtown South (Credit: Wikipedia)

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

Related Articles

A rendering of 1 St. Marks Place

New boutique office building headed for East Village’s St. Mark’s

Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank’s $3B payout to WeWork’s investors is delayed

John Legere (Credit: Getty Images)

WeWork reportedly in talks to hire T-Mobile exec as CEO

Clockwise from left: 135 S. Lasalle, 115 S. Lasalle, 400 S. Lasalle (Credit: Google Maps)

Chicago office landlords must solve a 2M sf problem before it’s
too late

(Credit: iStock)

Small Talk: Every community meeting. About every development project. Ever.

In the third quarter of 2019, nine sales totaling $587 million closed in the central business district (Credit: iStock)

Chicago’s ice-cold office market is finally heating up. But don’t get too excited

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat