As the vacancy rate for Manhattan Class A office space continues to drop, landlords are trying to see how far they can push up asking rents, according to Crain’s. They are holding back on their most sought-after properties in order to achieve higher rents.
According to recent data from Cassidy Turley, the Class A vacancy rate dropped to 10.8 percent for June, down a full percentage point from the same period last year. Yet, the number of buildings with zero vacancies dropped — from 48 to 42. Only 23 Midtown office buildings are now fully occupied, Crain’s said.
“Landlords are looking to see exactly how far up they can push the terms,” said Robert Sammons, Cassidy’s vice president of research, in terms of explanation. “They already see a good number of tenants in the market competing for important blocks of space.” [Crain’s]