The Manhattan office market finished the third quarter with another record high for average asking rents. They increased 1.5% from 2Q to $77.61, which is 5.7% higher than a year ago. Asking rents have increased every consecutive quarter since 3Q 2018. Direct asking rents increased in 12 out of 15 office submarkets.
Recent new construction deliveries contributed to the increase in rents, mostly in Midtown South’s far west side. There are over 600,000 square feet available between One Manhattan West, 30 Hudson Yards, 55 Hudson Yards, and 40 Tenth Avenue, where asking rents are well over $100 per square foot. Such rents are commonly seen in the Plaza District, which saw an increase in rents by $1.38 to $118.31 quarter-to-quarter and are up $5.44 year-over-year.
Click here to read the full Lee & Associates 3Q2019 New York Office Market Trend & Analysis.