SAC, Fortress and GoldenTree push up Manhattan office rents
January 19, 2011
Prices remain below their 2008 peaks, but some froth has re-entered the market for ultra high-end leases. Brokers predict as much as a 40% rise in rents by 2013.
Rental agreements signed recently by such money managers as SAC Capital Advisors, Fortress Investment Group and GoldenTree Asset Management have pushed up the asking price of high-end commercial real estate in Manhattan. Those hedge fund and other financial services firm deals helped cause vacancies in “Class A” trophy buildings—midtown’s most exclusive office spaces—to fall steadily throughout 2010 in parallel with price increases.
“The top office spaces in Manhattan continue to fly off the shelves,” says Cynthia Wasserberger of real estate firm Jones Lang LaSalle. “Hedge funds are paying up for space, but there are still plenty of deals given that we are still 30% to 40% below the peak rents of early 2008.”
Deals since November include SAC taking nearly 30,000 square feet of space at 330 Madison Avenue for prices between the mid-$50s and mid-$80s...
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