In Lower Manhattan, rising Class A starting rents have justified same-store rent growth and new development
Firms are transitioning from Midtown and Midtown South to Downtown for discounts on quality space and transit connectivity
April 16, 2019
- Since 2012, Class A direct starting rents have grown at a compound average rate of 6.3 percent per annum; landlords have been able to push asking rents at a rate of 4.4% during this same span to maintain the pricing delta relative to Midtown and Midtown South, which has averaged $35.78 per quarter since 2007.
- This growth has largely been a result of strong demand for brand new product in the World Trade Center and existing Trophy-quality space near the Fulton Center transit hub; much of this demand stems from firms, mostly in creative industries, transitioning from Midtown & Midtown South seeking to capitalize on the significant discount on quality space and transit connectivity that Downtown offer.
Note: Weighted averages used above / Source: JLL Research