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Triple-Digit Office Rents Broaden Their Base
Manhattan’s $100-plus club—office leases with starting rents of $100 or more per square foot—grew larger last year. JLL reported that 131 triple-digit deals were completed across 56 buildings in 2018, surpassing 107 signed in 2016 and 102 in 2017.
More properties joined the $100-plus club in 2018, and the 4.6 million square feet of deals at premium price points set a record for leasing volume, according to JLL.
Hedge funds and other financial services tenants traditionally fork over the highest office rents in Manhattan, and 2018 was no exception. However, JLL’s Cynthia Wasserberger and Hayley Shoener noted that while the finance sector accounted for 60% of triple-digit leasing deals last year, the tenant mix has diversified.
The iconic Seagram Building at 375 Park Ave. lost its crown as the longstanding hub for top-dollar deals, slipping into second place. Three properties including One Vanderbilt (pictured) were tied for first.
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