Renting an Office in Midtown South

Renting an Office in Midtown South

If your firm plans on renting and office in Midtown South the information that follows is essential to understanding the market. Midtown South includes the neighborhoods of Chelsea, Gramercy Park, Hudson Square, Soho and Greenwich Village, spanning 30th to Canal Street and River to River.

 

 

 

 

 

  

Who is Renting an Office in Midtown South

Midtown South is the #1 location for tech, media and fashion companies looking for a young, stylish 24/7 environment. The symbiotic nature of these industries is defined by Google which occupies 111 Eighth Avenue at 15th Street. The areas’ historic loft buildings offer floors with wide open space, large windows and high ceilings that are ideal for collaboration.    

 

 

 

 

 

 

By the numbers- Renting an Office in Midtown South

 Renting an office in Midtown South has become increasing expensive due to sustained demand and diminished supply. As of Q3 2013 the vacancy rate was 7.2% with an average asking rent of  $53.76 PSF on direct leases.  (The adjacent graph was provided by Costar.)  Rents range from a minimum of $31.20 in a few no-frills Chelsea buildings up to $90 in the new 51 Astor Place. Because young firms can quickly outgrow their spaces, a substantial inventory of “turn key” subleases can also be found, but caution is needed when renting these. One of the consequences of the spiraling costs in Midtown South is that companies are now relocating to the Garment and Financial District where rents can be much more affordable and the buildings are of overall better quality.

Best Strategy for Renting an Office in Midtown South

Building Agents (the Landlord’s Agent) are under contract with a building owner to lease space at the highest rents obtainable. Companies that

negotiate directly with a Landlord or its Agent are at a disadvantage because they are unaware of: (1) all of the available spaces and the pricing in comparable properties; (2) the economic terms of recently signed leases;  and (3) local market practices. By hiring a an experienced Tenant Representation Broker you can be assured of the best deal when you are renting an office in Midtown South or elsewhere in NYC. Cogent Realty Advisors is a NO FEE Tenant Representation Broker with over 15 years of success. Contact Mitchell Waldman today: (212) 509-4049.

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