Landlords rejoice Manhattan’s premium rental increase in 2022


As Manhattan’s workplace market teeters on the sting by means of 2023, with elevated availability and shrinking company footprints, some landlords at the very least have one thing to rejoice.

Membership C-note will see 77 leases in 2022, up from 56 in 2021, in line with a brand new JLL survey.

In line with JLL’s year-end abstract, leases signed at $100 per sq. foot or extra totaled 6.1 million sq. ft, greater than double the quantity of premium-priced area signed in 2021.

The report by JLL Vice President Cynthia Wasserberger, who labored with companions Carly Palmer and Margot Kelleher, cites a variety of startling statistics:

  • An unprecedented fifteen offers totaling 280,000 sq. ft had rents above $200. Two completely different small leases at SL Inexperienced’s One Vanderbilt reached $300 fsf.
  • Leasing was dominated by “flight to high quality” strikes to model new towers and to older towers that had been considerably upgraded. In actual fact, 62% of the most costly new leases have been in such properties.
  • Landlords with essentially the most leases have been Brookfield Properties, with 16 offers totaling 1.6 million sq. ft; SL Inexperienced with 17 transactions for 842,000 sf; Associated Corporations with 11 transactions of 703,000 sf; and RFR Realty, which closed 19 transactions of 386,000 sf.

JLL didn’t identify particular tenants within the $100 and over membership. However mega offers reported in 2022 included GFL Environmental at SL Inexperienced’s One Vanderbilt; IBM at SL Inexperienced’s One Madison; World Relay UA on the Durst Group’s 1155 Sixth Ave.; Vista Fairness Companions in Associated’s 50 Hudson Yardsand PDT and Deutsche Financial institution at Associated’s Deutsche Financial institution Middle at Columbus Circle.

One Vanderbilt
GFL Environmental was one of many mega offers in 2022 at SL Inexperienced’s One Vanderbilt.
Anthony Quintano by way of Flickr
50 Hudson Yards
Vista Fairness Companions was one other premium tenant final 12 months at Associated’s 50 Hudson Yards.
Kyodo Information by way of Getty Pictures

Not each sky-high hire was for much less area than the earlier tenant, however all mirrored the overwhelming “leap to high quality” that provides Class A property homeowners an enormous benefit over the remainder of the business.

Wasserberger referred to as the increase in premium leases “additional proof of the flexibleness and flexibility of top-of-the-market properties.”

“Many tenants selected to decide to the next stage of area whereas specializing in right-sizing their operations post-COVID,” Wasserberger mentioned.

“Proper dimension” normally means downsizing. It was a basic 2022 case KPMG’s 450,000-square-foot lease at Brookfield’s Two Manhattan West. The most important new lease of the 12 months really represented a lack of 350,000 sq. ft from KPMG’s present three areas.

How a lot the corporate is paying for its new digs, nevertheless, isn’t identified.


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