Good News For Trophies
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|The past six months witnessed a dramatic slowdown in the pace of rent decreases for Manhattan's trophy buildings-overall asking rents dropped 1.7% compared the second half of '09, which posted a 17.8% decrease, notes JLL's Spring 2010 Skyline Review. Rents at NY's top-end office buildings fell to $67.58/SF in the spring from $68.73/SF in the fall. Even though vacancy rates have improved, average office asking rents remain soft because sublease opportunities still comprise more than one-third of available offerings, says NY office director of research James Delmonte. Vacancies in trophy buildings peaked at 13.9% last year, but have hovered near 12% for the past five months. Overall, Manhattan's office market is reaching bottom and leasing is increasing, so there are signs that trophies will be the first segment of the office market to recover.|