Midtown NYC Office Rents Slip as ‘Silicon Alley’ Gains
July 10, 2012
By: David M. Levitt
... In the downtown market, which includes the city’s financial district, landlords sought $40.06 a square foot, down from $40.18. ...
... Asking rents in midtown south, an area roughly between 30th and Canal streets, rose to $49.43 a square foot in the second quarter from $48.45 in the previous three months. ...
... New towers under construction in Midtown and downtown will put further pressure on the market, according to a report by Studley Inc., a brokerage that represents only tenants. Some tenants may delay space decisions because of concerns about the U.S. elections, the fate of
financial reform and the European debt crisis, wrote Steven Coutts, Studley’s senior vice president for research.
“We’re in a kind of lull or holding pattern that will play to the benefit of tenants for a series of quarters,” Coutts said in a telephone interview. “That fact that you have more product coming on line, and that is pushing supply up a little bit, is a good opportunity for tenants.”
In lower Manhattan, 4 World Trade Center has about 1 million square feet (93,000 square meters) still unleased, according to Coutts’s report. The tower, which Larry Silverstein is developing, should be completed in about a year.
Two buildings slated for completion in 2013, 51 Astor Place in midtown south, and the International Gem Tower in Midtown, each have about 300,000 square feet available, he wrote.
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