Commercial Property Trends: Still Strong In Manhattan

Commercial Property Trends: Still Strong In Manhattan

Manhattan commercial real estate values continue to remain strong in spite of cooling trends in other parts of the country.

Commercial property investors have been bullish in recent months even after the emergence of 2007s mid-year subprime debt crisis. New York office space continues to be the most expensive in country by far, with office rents topping $200 per square foot at the high end and $100 rents commonplace, according to a new market research study. Midtown Manhattan is a landlords market with a Class A vacancy rate of 5.2 percent, the study says.

Manhattan is still a very unique market with limited inventory and huge demand, said Sam Heskel, vice president of HMS Associates. Everyone wants to be here.

Adding to the mix is the increasing popularity of commercial condominiums, which are increasing in value, Heskel said.

HMS / Newsletter/ 2008 winter/ COPY/ commercial property