Manhattan outperforms among major markets
Manhattan has the highest office rents in the United States, according to Colliers International’s first quarter 2017 Office Market Outlook report. Class A downtown rents in Manhattan averaged $79.47 per square foot, ahead of $75.35 per square foot in San Francisco. Moreover, Manhattan had stronger rent growth than San Francisco — the Big Apple saw rents grow 2.7 percent during the quarter.
Colliers reports average U.S. office asking rates grew by less than 1 percent in first quarter 2017. “However, class A rent appreciation is stronger. Among the major markets, Manhattan and Chicago are outperforming,” states the Colliers report.
Investors have continued to pursue trophy office buildings in Manhattan. Ivanhoe Cambridge, a unit of the Caisse de depot et placement du Quebec, acquired 85 Broad St. in Downtown Manhattan for $650 million in a partnership with Callahan Capital Properties. The 1.1 million-square-foot tower was sold by MetLife Real Estate and