Rent per square foot for office space in midtown falls
Office space rent in midtown has declined for the first time in two years, and midtown south has replaced midtown proper as the most desired area for office space in the city, according to Bloomberg.
Rent for space in midtown fell to an average of $66.44 per square foot in this year's second quarter, down from $66.68 in the first, Bloomberg reported, citing data from the brokerage firm Cushman & Wakefield Inc.
In midtown south, however, the asking price her square foot rose to $49.43 from $48.45, Bloomberg said, with a vacancy rate of 6.1%, the lowest of all central business districts nationwide.
"Historically, Midtown was the location that companies flocked to for affordable rent following a recession, but that's not the case this time," senior economist at Cushman & Wakefield Ken McCarthy reportedly said in a statement.
He added that some industry, especially the financial services, are "taking their existing footprint and using it more efficiently."
Downtown, including the Financial District, the average per square foot was $40.06 in the second quarter, down from $40.18 in the first.
Manhattan's overall vacancy rate remained flat, around 9%, despite improving employment numbers therealdeal.com reported.