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High-End Office Leases Reach New High in Manhattan
The flight-to-quality trend has given a boost to high-end office space in Manhattan, report CBRE’s Nicole LaRusso, Michael Slattery and Jared Koeck. Office leases with starting rents of $100 or more per square foot hit a new high in 2021, notching up 105 such deals, 18% above the five-year historical average.
Not only has the number of $100-plus office leases hit a new high, but also the number of leases at $150-plus per square foot and $200-plus per square foot. Offsetting these gains, though, are higher tenant improvement allowances and free rent packages, according to CBRE.
Activity at this tier of the market has been aided by new construction as well as renovated buildings entering the leasing market in the past few months. The financial services sector continues to account for the largest share of this market segment, but media and entertainment tenants and technology tenants are also represented.
- ◦Lease
