Manhattan Trophy Office Rents Reach $101 Per Square Foot in 2019

According to a new report by Commercial Café and Yardi Matrix Data, despite picking up some steam in the third quarter of 2019, Manhattan office sales still fell short of 2018 values. The total dollar volume dropped 34% year-over-year, closing out Q3 at $2.9 billion. However, the average sales price reversed its downward trend and rose significantly, reaching $1,676 per square foot--the highest value in four years. Overall asking rents continued to increase, with trophy office space rates leading the way. Vacancy in office buildings equal to or larger than 25,000 square feet fell slightly compared to the previous quarter, reaching 7.1% overall. Non-traditional office space accounted for 3.4% of the total office inventory, encompassing nearly 17 million square feet. Additionally, a little more than 3 million square feet of new office space is slated for delivery in Q4.