Top Navigation

Green Buildings Driving Midtown Rents to Unprecedented Heights

Last week’s edition of Crain’s reported the highest average asking rents (per square foot) in Midtown. It probably won’t surprise you that the highest are found at LEED Platinum hopeful Bank of America Tower (image to left), where an eye-popping $150 will give you (and presumably the clients paying for your sparkling new eco-friendly digs) spectacular views of Times Square and Bryant Park. The new Durst development is actually tied with 325 Park Avenue, according to a report released by Jones Lang LaSalle. Crain’s quotes JLL research director James Del Monte, who authored the report, stating that “[h]istorically, Manhattan has never seen rents like this.” Del Monte expects rents in trophy buildings (those that have been constructed or been renovated significantly since 1985, stand at prestigious addresses, have high profile tenants, or contain some sort of architectural significance) to hit a whopping $180 per square foot by 2012. Current average asking rents in Midtown stand at $104 per square foot, according to the JLL report.

The only two buildings scheduled to open up in 2008- Bank of America Tower (One Bryant Park) and the New York Times Tower- are green (though the latter opted not to pursue a LEED rating) and almost fully leased. Moreover, two other Midtown office towers coming online in the near future- the Verizon Building and FXFOWLE’s 11 Times Square- are both incorporating sustainable design elements. 11 Times Square (2009 occupancy) is Midtown’s first speculative office building project in years and will seek a LEED Silver rating.

It’s no coincidence that green design is fueling the largest increase in prime commercial Midtown real estate prices in the history of New York City- and only six years after many declared the Manhattan office tower model dead in the aftermath of September 11th. Coupled with what’s happening downtown, we’re about to enter some truly exciting times for sustainable construction in New York City, the lessons (and hopefully performance data) from which will undoubtedly go a long way towards educating future project teams in other parts of the country about integrated design on high profile high-rise projects.

, , , ,

No comments yet.

Leave a Reply