Plaza District office market keeps its premium
June 1, 2011
By: Melissa Dehncke-McGill

As New York City real estate is to the country, the Plaza District seems to be to New York: The last to fall and the first to rise. In this month's Q & A, The Real Deal talked to commercial brokers, analysts and building managers about the office district -- one of the toniest commercial submarkets in Manhattan. ...

...For more on which buildings are performing best, what kinds of concessions are being offered and where the bargains are, we turn to our panel of experts. ...

...Evan Margolin
corporate managing director, Studley

How much of a discount off asking rents are tenants getting in the Plaza District right now, and how does that compare to three months ago, six months ago and a year ago?

The discount from asking to taking rents has compressed just a little bit … but the real difference is when you look at the net effective rents where you take into consideration the concessions like the free rent and the build-out allowances. There is a much bigger spread now -- though it is hard to say on a percentage basis -- than we saw three months, six months or a year ago. On smaller spaces, where for the past two years I would say it was expected that the landlord would do a whole build to suit a tenant, now landlords are claiming that they want to get out of the construction business and just go back to giving a tenant improvement allowance and letting the tenant build the space themselves. We are starting to see that, but not across the board. ...

Link to article