Manhattan office space leasing price increases and availability decreases

A report published by CB Richard Ellis Group shows that renting office space in Manhattan, New York has increased by 34% compared to the previous year.

As much as 15.7 million sq ft of office space was rented out in the first half of 2011; 4 million sq ft more than the first half of 2010.

Some of Manhattan’s biggest deals were made by Condé Nast Publications and law firm Morrison Foerster. Between them, the two companies have made agreements to lease office space at 1 World Trade Center in lower Manhattan and 250 W. 55 St in Midtown Manhattan.

Manhattan office availability was 11.3% at the end of June 2011 which is around a 3% decrease from the previous year. CB Richard Ellis said that rent prices sought by landlords have increased by 9.1% in the last year.

US Office Market sectors

According to CoStar Group, the financial services, insurance and real estate companies are the largest users of office space in the US, taking up approximately 22% of all office space. Services companies, including technology take up around 14% of office space in the US.

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Source: Office leasing rate grows