An industry analyst is forecasting a possible decline in average asking rents on sixth avenue and along the side streets stretching from 42nd to 59th streets. Savills Studley chief economist Heidi Learner says in a new report that in light of expected tenant relocations from the area and some space having sat idle for some time, availability rates may trend upward, forcing landlords to get creative in marketing their space.
“In the absence of activity—given upcoming lease expiries and tenant relocations—Sixth Avenue will see an increase in availability rates,” she tells GlobeSt.com. “If that happens, the balance of power really will shift in favor of the tenant. We could see higher tenant improvement allowances, free rent for a certain number of months, or downward pressure on rents is another possible outcome.”Could Midtown’s Rents Decline on Sixth Ave?
Related StoriesShifts Along Sixth Avenue
New York City Office Sector Report (Q2 2014)