Philly Office Space no Longer Cheaper than NYC
March 16, 2011


Downtown Manhattan asking rents for office space are falling toward the mid-$30s/sq ft in the Wall St financial district. That's about the same as high-end buildings like Philadelphia's Mellon, Liberty Place and Three Logan (Bell Atlantic) have been trying to charge tenants.

That's a third of what top New York landlords were asking just four years ago. "This casts a light on how volatile a market NYC is," notes Roger T. McManimon, director at Cushman & Wakefield of Pennsylvania Inc. "Philadelphia is slow and steady in comparison." ...

..."Wall Street landlords are seeking rates about 18 percent less than the city average, hurt by years of exodus by financial firms looking for bigger, more modern offices, according to brokerage Studley Inc. ...

... "At the end of February, asking office rents on Wall Street were about $36.51 a square foot, compared with the average of $38.56 for all of downtown and $44.74 for the city, according to New York-based Studley, which represents tenants." That's way down from the mid-2000s, when top rents approached $90/sq ft. And asking rents are higher than what tenants actually pay.

 "Wall Street had an office vacancy rate of 15.9 percent as of the end of February, higher than downtown’s overall rate of 10.7 percent," and comparable with Philadelphia's, Studley data show. ...