At a glance
- The average asking rent reached nearly $80 per square foot, matching its March 2020 level, and trophy buildings are commanding record prices, the report said.
- For allocators with office exposure, the split that matters is trophy versus commodity, not metro-level rents.
- As Private Real Estate Daily previously reported, Manhattan leasing rose 2.3% through the third quarter and vacancy fell to 12.6%, on JLL data cited by IREI.
Manhattan office leasing is on pace for its strongest year since 2000, with 4.5 million square feet leased in October, up more than 50% from September, according to Colliers data cited by The Real Deal.
The average asking rent reached nearly $80 per square foot, matching its March 2020 level, and trophy buildings are commanding record prices, the report said.
For allocators with office exposure, the split that matters is trophy versus commodity, not metro-level rents. The recovery is concentrated in buildings that finance, law and technology tenants compete for. The construction freeze cited in the report tightens pricing power for that group without doing the same for older stock, which suggests metro averages flatter the commodity end.
As Private Real Estate Daily previously reported, Manhattan leasing rose 2.3% through the third quarter and vacancy fell to 12.6%, on JLL data cited by IREI. Fourth-quarter leasing and rent figures will test whether the October pace holds.
Reported by the Sectors desk. Published . Corrections