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Manhattan’s Hot New Office Amenity: Outdoor Space

Outdoor space has become one of the most sought-after amenities among tenants in the Manhattan office market, CBRE reported. Landlords are integrating dedicated outdoor areas into their buildings, such as single-floor terraces and landscaped rooftops, and commanding a 14% rent premium for terrace floors.

New construction is leading the trend, with 79% of Manhattan office buildings completed since 2010 or currently under construction featuring outdoor space. However, landlords of older existing properties are also leveraging outdoor space to attract tenants, repurposing setbacks and vacant rooftops as terraces and roof decks.

“The addition of terraces and rooftop communal areas is increasingly common in landlords’ capital improvement efforts of their older assets,” said Nicole LaRusso, director of research & analysis, CBRE Tri-State.

“Only 27% of office buildings in Manhattan currently offer outdoor space,” she added. “The robust demand and limited availability have generated higher premiums for floors with private terraces.”

Pictured: The recently added rooftop lounge at Silverstein Properties’ 120 Broadway.

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For comments, questions or concerns, please contact Paul Bubny

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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