Manhattan Q3 2014 Effective Rent Report

CompStak's Q3 2014 Effective Rent Report for Manhattan finds that the number of top tier Midtown transactions decreased this quarter. Vibrant class A leasing activity in Midtown South held Manhattan average effective rent at $56.70 PSF, virtually the same as last quarter. The class B sector recorded strong performance this quarter following four consecutive quarters of growth. Average class B effective rents have increased over 10% compared to Q3 of last year.

Midtown and Downtoan Class A Slow, Class B Trending Up

  • Fewer high end Midtown class A transactions this quarter
  • An increase in Midtown class B leasing activity
  • Downtown: disparity between WTC Effective Rents in the low $50s and the Financial District's mid $30s

Spotlight: Midtown South Getting Pricey

Midtown South leasing has shown the largest rental growth of any Manhattan market over the past few years. The 19% growth in effective rent since the Q3 of last year can be explained by a combination of factors including pricey expansions in Chelsea, an ongoing demand for creative space, and the opening of new high-end buildings, enticing tenants to pay upwards of $100 PSF in starting rent. Area wise, Midtown South leases now account for 26% of the priciest office leases in Q3.

Read the full Q3 2014 Effective Rent Report