Midtown Manhattan Rents Surge 22% for Highest-Quality Space, Studley Says
July 8, 2011
By: David M. Levitt

Midtown Manhattan rents for the highest-quality offices rose 22 percent since bottoming out nine months ago as financial firms filled space in the largest and most expensive U.S. market, brokerage Studley Inc. said.

In the Plaza District, the area surrounding the Plaza Hotel near Central Park, lease rates for class A offices spiked 43 percent since Sept. 30 to almost $84 a square foot at the end of June, the New York-based firm said in a draft report. That’s more than four times the district’s growth rate in the first nine months of 2004, when the Manhattan office market began recovering from the previous recession.

Hedge funds and the like, those are really driving the top end of the market,” said Steve Coutts, Studley’s senior vice president for research. “If you’re going to recruit top talent, the cost of the space is less of an issue than is attracting that talent and maintaining that talent.” ...

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