Firms seeking leases of less than 10,000 square feet–usually in Class B buildings–are largely responsible for the city’s hot commercial real estate market. The high demand for small- to medium-sized leases in Manhattan is one of the reasons the city is considering rezoning the Garment District to allow for more office space in the area. At 370 Lexington Avenue, Broad Street Development has signed around 100,000 square feet of leases since purchasing the Class B building last year. Occupancy has gone from 78 percent when Broad Street purchased it to around 95 percent today, and asking rents have risen from the mid $40s to the low $50s. more [Post]
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