Commercial Rental Rates Plummet in Manhattan
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
The slowdown in the real estate market is finally hitting New York office space: After years of surging upward, commercial rental rates in Manhattan decreased in the second quarter, a new report shows.
Asking rent declined 2.2%, to $69.29 a square foot, while Class A rents plummeted 4.4%, to $90.65, according to Studley’s second-quarter market report, released yesterday. Meanwhile, the availability rate jumped half of a percentage point, to 8.2% — nearly a full percentage point higher than a year ago. At the same time, the supply of sublet space is increasing, up 34% versus the prior quarter, to 8.3 million square feet.
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