James Delmonte, VP and director of research at JLL, tellsGlobeSt.com that directly after 9/11 there was a slowdown for towerleasing. "When we first started looking at the data and goingthrough the numbers roughly two months ago for this report,although we knew there would be a premium," he explains, "we weresurprised at how high it actually was."
CB Richard Ellis' research numbers also show that the demand isthere. The company tells GlobeSt.com that the average asking rentin midtown is $81.34 per sf. As far as Midtown tower floors rentsgo: rent for the 32nd and 33rd floor at 1095 Avenue of the Americasgoes for $150 per sf; the 47th floor at 1 Bryant Park fetches $185;and 745 Fifth Ave. gets $160 for the 30th floor. For Downtown, theaverage asking rent is $46.37 per sf; however, 32 Old Slip fetches$75 per sf for the 34th through 36th floor and 17 State St. gets$75 per sf. According to Silverstein Properties website, 7 WorldTrade Center's rate per sf for the 46th through 50th floor is $75per sf.
According to JLL, as of the end of Q2 this year, the averagetaking rent was $63.75 per sf compared to $86.36 per sf for towerfloors. While asking rents and taking rents for tower floors haveincreased to record-highs, the average premium has similarly risenover the real estate cycle. The report noted that in some Midtownpre-eminent addresses, starting rents are getting as high as $150per sf. As of the end of the Q2 '07, there were 38 deals completed,more than half of which were in tower floors, with starting rentsin excess of $100 per sf compared to 14 for all of 2004 and 18 in2005.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
