Class B Office Suffers in Manhattan in Q4: New Data from Coldwell Banker Commercial

New Class-A office towers are pulling offices tenants out of older buildings. In the fourth quarter of 2017, New York City’s Class-A office space experienced strong leasing activity, while Class-B space suffered a decline in rental rates, according to new research by Coldwell Banker Commercial.

The average rent for Class-A office space grew to $74.01 per square foot, up 1.8% from the quarter before. Class-B rents fell to $60.70 per square foot, down 2.5%.

These giant projects include:

– One Manhattan West, a 2,216,609-square-foot building next to Hudson Yards with 82% of its space pre-leased.

– 3 Hudson Boulevard, a 1,900,000-square-foot facility also located in Hudson Yards scheduled to deliver at the end of 2021.

– 425 Park Ave., a 670,000-square-foot building that will deliver in the first quarter of 2019 and has secured Citadel Investment Group as an anchor tenant.

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