Midtown Manhattan Office Space Still Squeezed
March 6, 2016

Midtown Manhattan is still riding the wave of office leasing that marked much of last year as demand remains strong and rental rates keep inching upward.

Real-estate experts, though, are far apart on whether the mature submarket can sustain its performance of 2015 or soften if demand fails to keep up with new construction and space returned to the market.

There are those who predict steady but slow growth in rents. Others see rents gradually flattening, and perhaps even dropping, as new offices open and companies stay on the trajectory of less space per worker.

Midtown rents “still have some room to grow” because rents are still below their 2008 peak, said Richard Persichetti vice president of research, marketing and consulting at real-estate services firm Cushman & Wakefield....

“We don’t see the demand there to quickly absorb the space,” said Keith Decoster, director of real-estate analytics for Savills-Studley, a real-estate services firm representing tenants...

Midtown Manhattan Office Space Still Squeezed

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