{"id":36107,"date":"2019-09-16T15:21:07","date_gmt":"2019-09-16T12:21:07","guid":{"rendered":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/?p=36107"},"modified":"2019-12-13T17:02:26","modified_gmt":"2019-12-13T15:02:26","slug":"manhattan-office-sales-drop-26-y-o-y-trophy-office-asking-rents-average-94-sq-ft-q2-2019-report","status":"publish","type":"post","link":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2019\/09\/16\/manhattan-office-sales-drop-26-y-o-y-trophy-office-asking-rents-average-94-sq-ft-q2-2019-report\/","title":{"rendered":"Manhattan Office Report Q2 2019: Sales Drop 26% Y-o-Y, Trophy Office Rents Ask $94\/Sq. Ft"},"content":{"rendered":"<h2>Key Takeaways:<\/h2>\n<ul>\n<li>Q2 office sales stop short of $2 billion; prices rest at $556 per square foot on average<\/li>\n<li>Class A+ asking rents increase 4% quarter-over-quarter; now average $94 per square foot<\/li>\n<li>NYC remains coworking capital of the U.S., with more than 16 million square feet of non-traditional office space<\/li>\n<li>Google makes largest Q2 office acquisition<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Manhattan_Office_Market_Slides_to_Lowest_Price_in_5_Years\"><\/span>Manhattan Office Market Slides to Lowest Price in 5 Years<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Manhattan\u2019s office market experienced a slowdown in Q2, with year-over-year sales volume dropping 26%, according to the latest report from <a href=\"https:\/\/www.commercialcafe.com\/blog\/manhattan-office-report-q2-2019\/\" target=\"_blank\" rel=\"noopener noreferrer\">COMMERCIALCaf\u00e9<\/a>. In fact, the nine office deals closed in Q2 amounted to just under $2 billion. Office assets that changed hands during the year\u2019s second quarter encompassed 3.5 million square feet and averaged $556 per square foot. This was 37% lower than the same time last year, and marked the lowest quarterly average price per square foot in five years.<\/p>\n<p><iframe loading=\"lazy\" style=\"border: none;\" title=\"Q2 2019 Manhattan - Sales Volume vs. Deals\" src=\"https:\/\/e.infogram.com\/3d5fb9cd-b84a-4c10-8aa5-46db8bf402d1?src=embed\" width=\"1007\" height=\"650\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>Overall, the average asking price for full-service rent for <a href=\"https:\/\/www.commercialcafe.com\/office\/us\/ny\/manhattan\/\" target=\"_blank\" rel=\"noopener noreferrer\">Manhattan office space<\/a> was $75.60 per square foot in Q2. The most notable uptick in values was recorded for Class A+ office space, which saw a 4% increase compared to the closing of Q1; trophy space rents averaged $94 per square foot in Q2. Class A office space averaged $69 per square foot, while rents for Class B properties closed out at an average of $63 per square foot. Vacancy on the Manhattan office market was 7.5% at the end of Q2.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Manhattan_Coworking_Scene_Remains_Nationwide_Leader\"><\/span>Manhattan Coworking Scene Remains Nationwide Leader<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/www.commercialcafe.com\/coworking-space\/us\/ny\/manhattan\/meatpacking-district\/\" target=\"_blank\" rel=\"noopener noreferrer\">Coworking office space in Manhattan<\/a> surpassed 16 million square feet in July 2019, reinforcing NYC\u2019s leading position among U.S. markets for the highest coworking inventory, per the report. Although this represents barely 3% of total office inventory in the Manhattan market, it still allowed Manhattan to keep its leading position, which it\u2019s held since 2012.<\/p>\n<p><iframe loading=\"lazy\" style=\"border: none;\" title=\"Manhattan Cowork\" src=\"https:\/\/e.infogram.com\/151bd658-3ecf-489e-9f91-fc702ce47137?src=embed\" width=\"703\" height=\"450\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>&nbsp;<\/p>\n<p>Two more office properties were added to the total inventory during Q2:<\/p>\n<ul>\n<li>The massive, 2.8-million-square-foot 30 Hudson Yards \u2013 the tallest tower in the pristine, new district.<\/li>\n<li>The 64,000-square-foot boutique office condominium at 100 East Broadway in Chinatown.<\/li>\n<\/ul>\n<p>Office projects scheduled for completion during Q3 include 35 Hudson Yards, the Hudson Commons Expansion, Solar Carve Tower, and a medical center at 330 East 62nd Street.<\/p>\n<p><iframe loading=\"lazy\" style=\"border: none;\" title=\"Top Deals of Q2 2019 in Manhattan\" src=\"https:\/\/e.infogram.com\/b69b7de8-bc2f-4feb-8dbd-bfe32c54be5c?src=embed\" width=\"1024\" height=\"350\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Google_Continues_Manhattan_Expansion_Next_to_Chelsea_HQ\"><\/span>Google Continues Manhattan Expansion Next to Chelsea HQ<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Last year, Google dropped more than $2.4 billion to acquire the 1.1-million-square-foot Chelsea Market building. This May, the tech giant closed on the neighboring Milk Building, with the 325,000-square-foot Meatpacking District expansion costing just under $600 million. Coming in as the largest Q2 office sale on the Manhattan market, the deal worked out to $1,821 per square foot.<\/p>\n<p><em>For a complete and detailed picture of the Manhattan office market in Q2, read the <\/em><a href=\"https:\/\/www.commercialcafe.com\/blog\/manhattan-office-report-q2-2019\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>full report on COMMERCIALCaf\u00e9<\/em><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways: Q2 office sales stop short of $2 billion; prices rest at $556 per square foot on average Class A+ asking rents increase 4% quarter-over-quarter; now average $94 per square foot NYC remains coworking capital of the U.S., with more than 16 million square feet of non-traditional office space Google makes largest Q2 office&hellip;<\/p>\n","protected":false},"author":67,"featured_media":36123,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[89,376,328],"tags":[],"class_list":["post-36107","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manhattan-real-estate","category-new-york-commercial-real-estate","category-new-york-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Manhattan Office Report Q2 2019: Sales Drop 26% Y-o-Y, Trophy Office Rents Ask $94\/Sq. Ft - PropertyShark Real Estate Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2019\/09\/16\/manhattan-office-sales-drop-26-y-o-y-trophy-office-asking-rents-average-94-sq-ft-q2-2019-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Manhattan Office Report Q2 2019: Sales Drop 26% Y-o-Y, Trophy Office Rents Ask $94\/Sq. 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Ft","og_description":"Key Takeaways: Q2 office sales stop short of $2 billion; prices rest at $556 per square foot on average Class A+ asking rents increase 4% quarter-over-quarter; now average $94 per square foot NYC remains coworking capital of the U.S., with more than 16 million square feet of non-traditional office space Google makes largest Q2 office&hellip;","og_url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2019\/09\/16\/manhattan-office-sales-drop-26-y-o-y-trophy-office-asking-rents-average-94-sq-ft-q2-2019-report\/","og_site_name":"PropertyShark Real Estate Blog","article_published_time":"2019-09-16T12:21:07+00:00","article_modified_time":"2019-12-13T15:02:26+00:00","og_image":[{"width":1920,"height":1280,"url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-content\/uploads\/sites\/98\/2019\/09\/Manhattan-office-report-.jpg","type":"image\/jpeg"}],"author":"PropertyShark Staff","twitter_card":"summary_large_image","twitter_misc":{"Written by":"PropertyShark Staff","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2019\/09\/16\/manhattan-office-sales-drop-26-y-o-y-trophy-office-asking-rents-average-94-sq-ft-q2-2019-report\/","url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2019\/09\/16\/manhattan-office-sales-drop-26-y-o-y-trophy-office-asking-rents-average-94-sq-ft-q2-2019-report\/","name":"Manhattan Office Report Q2 2019: Sales Drop 26% Y-o-Y, Trophy Office Rents Ask $94\/Sq. 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