Where do office tenants pay top dollar, you may ask? According to the 2017 Most Expensive Streets Report, the Midtown Manhattan stretch of Fifth Avenue ranks number two on the list of the country’s most expensive streets.
Fifth Avenue, from 50th Street to 61st Street, came in second behind California’s Sand Hill Road in Menlo Park, recording an average asking rent of $116.04 per square foot with top asking rents as high as $185 per foot. Popular among hedge funds, investment banks and law firms, Fifth Avenue remains a New York landmark and one of the country’s most desirable addresses.
Mo Beler, Managing Director in our New York office, spoke to the Wall Street Journal last week about FIfth Avenue’s prestige: “When you think about Fifth Avenue buildings, they’re comprised of a subset that are all proximate to the park [Central Park] and have stellar park views.”
The Fifth Avenue office vacancy rate of 11.9% in the third quarter was higher than Manhattan’s overall rate of 10.2%, but the almost 2 percentage point difference is the norm, says Mo. A number of high-profile hedge funds and financial terms have signed leases to relocate from typical high-profile addresses like Fifth Avenue to new developments such as Hudson Yards. Still, some owners are generational landlords, says Beler, who can afford to hold out of premium rents and the right tenant.
Read the full WSJ article here, and check out the 2017 Most Expensive Streets Report here.