Manhattan office leasing sets a record
January 2, 2014


Manhattan office leasing climbed to a record in the fourth quarter, driven by large agreements by companies such as Citigroup Inc. (C:US) seeking cost-effective real estate, according to brokerage Studley Inc.

Leases were signed for 12.7 million square feet (1.2 million square meters), up from 5.8 million a year earlier, Studley said in a draft report. Citigroup’s 2.6 million-square-foot renewal at 388 and 390 Greenwich St. in lower Manhattan was the largest deal. The three next-biggest transactions also were downtown, a sign that large space users are capitalizing on that area’s lower prices and government incentives, said Steven Coutts, Studley’s vice president for research...

Rents sought by landlords averaged $63.04 a square foot in the fourth quarter, a 10.6 percent jump from the end of 2012.

Midtown rents averaged $72.32 a square foot, up 8 percent in a year. Downtown rents surged 19 percent to $52.27. In the area known as midtown south -- roughly between 30th and Canal streets -- rents averaged $65.72, a 5 percent increase.

Lower-priced space was the most sought after in the fourth quarter and last year, with tenants attracted to downtown and aggressively priced vacancies on Midtown’s Avenue of the Americas, Coutts said. As those spaces were leased, offices that came onto the market tended to be higher priced, boosting average asking rents, he said...

Manhattan office leasing sets a record

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