The average asking rent for Class A office space in Midtown Manhattan was ***** U.S. dollars per square foot in the first quarter of 2024. It was above the Manhattan average of ***** U.S. dollars, but below that of Midtown South, which was the most expensive district at ****** U.S. dollars per square foot. What is Class A real estate?Class A real estate refers to the best properties in terms of appearance, age, quality of infrastructure and location. These properties usually command the highest rental rates, due to their high quality. In the U.S., Manhattan has the most expensive rents for Class A offices.Midtown vs Midtown SouthMidtown Manhattan contains the Empire State Building, MoMA, Grand Central Station, and the United Nations Headquarters. The most expensive submarket there was Plaza District in 2024. Meanwhile, Midtown South is home to Madison Square Garden, Pennsylvania Station, Hudson Yards, and Koreatown. In 2024, the most expensive submarket there was Hudson Yards, followed by Chelsea and Hudson Square.

The average Class B asking rent for office real estate in Manhattan in the fourth quarter of 2023 was ***** U.S. dollars per square foot. The district that reported the highest average Class B rent was Midtown South, where a square foot of space cost ***** U.S. dollars. Between the fourth quarter of 2022 and the fourth quarter of 2023, rents in Midtown South increased, while in Midtown and Downtown, they declined.

Home of the New York Stock Exchange, Times Square, the Theater District, and countless other landmarks, Manhattan is undoubtedly among the most expensive commercial real estate markets in the United States. On 5th Ave (49th St. - 59th St.), the annual asking rent of retail space reached ***** U.S. dollars per square foot in the first half of 2023. Broadway & 7th Ave (42nd St. - 47th St.) had the second highest rent among Manhattan corridors, with a median asking rent of *** U.S. dollars.

The average asking rent for office space in Midtown South, Manhattan in the fourth quarter of 2023 was highest in Hudson Yards where a square foot of space cost ****** U.S. dollars to rent. The cheapest submarket to rent office space in the fourth quarter of 2023 was Penn Plaza with ***** U.S. dollars rent per square foot.

The average Class B asking rent for office real estate in Midtown, Manhattan in the fourth quarter of 2023 varied by submarket. Columbus circle had the highest average Class B rent of ***** U.S. dollars per square foot, while Times Square had the lowest rate of ***** U.S. dollars per square foot. The average class B asking rent in Midtown was ***** U.S. dollars in that quarter.

Brooklyn is the most populous and densely populated county in New York, as well as among one of the most expensive real estate markets in the United States. In the second half of 2023, the average annual asking rent of retail real estate in different corridors in Brooklyn varied between ** and *** U.S. dollars per square foot. North Sixth Street (Driggs Ave - Kent Ave) was the most expensive corridor, with an average square footage rent of *** U.S. dollars.

Rental rates in the United States increased steadily since 2008. In 2023, the producer price index for gross rent in office buildings reached ***** index points. This means that between 2008 when the index value was set to 100 and 2023, gross office rents grew by about ** percent. Manhattan, San Francisco, and Boston are among the biggest and most expensive markets for office space in the United States.

In Texas, Austin was the most expensive market for office space in the second quarter of 2024. The rental rate of class A offices was nearly ** U.S. dollars per square foot, compared to ** U.S. dollars per square foot for El Paso. Dallas, which is the largest office real estate market in the state, had rental rates of about **** U.S. dollars for all classes and **** U.S. dollars for class A offices. In the United States, Manhattan, San Francisco, and Silicon Valley-South Bay fetch the highest office rental rates.

The average asking rent in Manhattan in the fourth quarter of 2023 declined slightly. The asking rent in Midtown South Manhattan amounted to ***** U.S. dollars per square foot, making it the most expensive district. Downtown Manhattan was the cheapest to rent, at ***** U.S. dollars per square foot.

After peaking in 2023, the average rent for industrial real estate for warehouse distribution use in New York City Metro declined. In the first quarter of 2024, the average rent was ***** U.S. dollars per square foot. Despite the decrease, this was notably higher than 2017, when it amounted to **** U.S. dollars. New York City Metro is one of the leading markets in the U.S. in terms of industrial and logistic state inventory.

Between 2022 and 2023, the Insurance District was the only submarket in Downtown Manhattan where the average office rent increased. The average asking rent for office space in Downtown Manhattan was the highest in Tribeca where a square foot of space cost ***** U.S. dollars to rent in the 4th quarter of 2023. The cheapest submarket to rent office space was City Hall with ***** U.S. dollars rent per square foot.

Manhattan, NY, was the market where renting an office was most expensive in the United States in 2023. The average annual quoted square footage rent of office space was close to ** U.S. dollars in the fourth quarter of the year. Only one other market - East Bay - came close to this rental rate. In Washington D.C., the market with the second-largest inventory of class A downtown offices, the annual rent amounted to approximately ** U.S. dollars per square foot. Since the onset of the coronavirus pandemic, the office real estate sector has been suffering an increase in office vacancies, affecting both downtown and suburban properties.

The average Class A asking rent for office real estate in Downtown Manhattan in the fourth quarter of 2023 varied significantly among submarkets. Tribeca had the highest average Class A rent of ****** U.S. dollars per square foot. Renting a square foot of Class A property in Tribeca cost more than double the cost in all the other submarkets in Downtown Manhattan. Meanwhile, the Insurance District was the only district where Class A office rents rose between 2022 and 2023.

The average Class A asking rent for office real estate in Midtown, Manhattan in the fourth quarter of 2023 varied significantly among submarkets. Plaza District had the highest average Class A rent of ***** U.S. dollars per square foot, while the U.N. Plaza had the lowest rate of ***** U.S. dollars per square foot. Times Square was the only submarket where rents rose between 2022 and 2023.

The amount of office space in Midtown Manhattan amounted to ***** million square feet in the first quarter of 2024. This was the largest district in terms of office inventory, followed by Midtown South and Downtown Manhattan. Importance of New York for office spaceManhattan is the most famous borough of New York City, and is home to the headquarters of many international organizations as well as multinational corporations, such as the United Nations, Citi and Pfizer. The borough is also located on an island in the middle of the city, which means that the volume of space is limited in supply and that real estate is in high demand there. Asking rents in the borough are, consequently, very high. Availability of office spaceThe availability rate of office space in Manhattan varies between the districts, but is almost ** percent on average. This means that roughly ** percent of total rentable space is available.

The average Class A asking rent for office real estate in Midtown South, Manhattan in the fourth quarter of 2023 varied significantly among submarkets. Hudson Yards/Manhattan West had the highest average Class A rent of ****** U.S. dollars per square foot. A square foot of Class A property in Murray Hill cost ***** U.S. dollars to rent, which was about half the cost of one in Hudson Yards.

Annual office occupancy costs in the Americas were highest in Manhattan in New York City where they reached over *** U.S. dollars per square foot in the second quarter of 2021. Occupancy costs include service charges and taxes, and are also known as gross rents in the United States. In the same period, office occupancy costs amounted to ***** U.S. dollars per square foot per year in Rio De Janerio, Brazil which was the lowest recorded in the range in this category.