Manhattan From Governor's Island

Large Blocks of Space Permeate Manhattan Office Market

Posted on October 12, 2013 · Posted in Office Market

There are currently 68 blocks of available space in the Manhattan market that are greater than 100,000 square feet — and that’s excluding spaces that are under construction. The average price per square foot within these large blocks is $65.74. These 68 blocks total 15.4 million square feet, or approximately one third of available supply. The average price of $65.74 per square foot is $2.81 per square foot higher than the average overall price in Manhattan, despite the presence of subleases in the average price.

The submarket with the most available blocks is Midtown, with 41 of the 68 blocks, or 8.6 million square feet of space available. The average rent in this submarket is also higher than its overall rent price, $71.94 compared to $70.68 per square foot overall. Within this region, Grand Central has the most available blocks at 11, and the East Side/United Nations area has the fewest at one available block.

Another submarket of interest is Downtown with 17 of the 68 available blocks, totalling 5.2 million square feet. In contrast to Midtown’s average price per square foot, Downtown’s average price is lower than the overall Manhattan average at $53.04 per square foot. Most of this region’s available blocks are in the World Trade Center and Financial submarkets, which each have eight blocks of available space. Six of the eight blocks available at the World Trade Center submarket are available at Brookfield Place.

With even fewer of the large blocks of available space is Midtown South, with 10 blocks, or 1.8 million square feet. These blocks account for approximately 25% of Midtown South’s available supply. While short on supply, this region’s average rent is the highest of the three markets at $73.76 per square foot. A significant driver increasing this average is the recently constructed 51 Astor Place. Without this property, the average rent for Midtown South is $66.43 per square foot.

Photo credit: Asterix611