New York Chart of the Week: December 18, 2014
- The demand for Class B space has increased as value options elsewhere, including Midtown South and Penn Plaza, have diminished.
- The average Class B taking rent has increased 12.7 percent year-over-year to $53.66 as overall vacancy nears a pre-recession low at 8.4 percent.
- For the first time post-2007, Midtown South leads the Manhattan market in Class B leasing activity. YTD, Midtown South totals 1.7 million square feet of Class B leasing, spurring its average taking rent to $61.56 p.s.f.— a 10.4 percent increase year-over-year*.
Source: JLL Research
*Only includes new and renewal leases using a weighted average for starting rents.