Jones Lang LaSalle report reveals 20% boost in asking rents

Real Estate Weekly,  July 11, 2007  

• E-mail
• Print
• Link

Jones Lang LaSalle's spring 2007 Skyline Review revealed that the most sought-after spaces within Midtown New York's trophy-quality office buildings have seen average asking rental rates increase 20 percent since September 2006.

The premium spaces within Downtown's top office buildings have seen rates increase nearly 36.4 percent in the same time period.

The spring 2007 report demonstrated that Midtown Manhattan's top-end spaces posted historic average asking rental rates of $150 per square foot, compared to the previous record of $125 per square foot reported in the company's fall 2006 Skyline Review. Four Midtown buildings have offered spaces that have reached the $150 range.

"Manhattan remains one of the most important markets in the world," said Peter Riguardi, president of Jones Lang LaSalle's New York office.

"Global corporations and regional businesses recognize they must maintain a presence in New York. With available space becoming scarcer all the time, we see continued upward pressure on rents in Manhattan."

Lower Manhattan's market-leading spaces also set records, posting average asking rents of $75 per square foot vs. $55 per square foot in the fall 2006 Skyline Review. In Downtown New York, only 7 World Trade Center is commanding average asking rents of $75 per square foot.

Overall Midtown trophy rents have increased nearly 12 percent since Jones Lang LaSalle's fall 2006 Skyline Review, increasing to $104.14 per square foot from $93.25 per square foot.

In Midtown, 21 buildings reached average asking rental rates of $100 per square foot or more, and 14 buildings sought $120 or more.

In Lower Manhattan, overall trophy rents have grown nearly 28 percent since the company's fall 2006 Skyline Review, rising to $66.64 per square foot from $52.10 per square foot.

Nine office buildings Downtown achieved average asking rental rents of $50 per square foot or more, and seven properties reached $65 per square foot or more.

Jones Lang LaSalle's Skyline Review is an ongoing index of the performance of 58 of New York's Midtown and Downtown trophy buildings: the high-profile, premium-location office properties that everyone wants to occupy.

The company released the first Skyline Review in fall 2006.

Jones Lang LaSalle launched the Skyline Review to track for clients how a city's office market is performing by comparing data on the buildings that lead the market.

COPYRIGHT 2007 Hagedorn Publication
COPYRIGHT 2008 Gale, Cengage Learning