Traditionally, major corporations and financial heavyweights have sought Manhattan office space in the heart of this borough's downtown area. However, the desire to find more affordable office space to rent has encouraged many businesses to conduct an office space search on the outskirts of Manhattan's central business district, in areas such as Midtown South.
Of course, the somewhat ironic consequence of this migration is that rents in Midtown South are now rising, as reported recently by Bloomberg. The news source noted that, on April 30, rents for top office space in Midtown South averaged $66.74 per square foot, which represents a 16 percent increase from one year earlier.
That average price is nearly on par with costs in traditional leasing heavyweight Midtown, where the average price is $71.96, according to the report. The profile of tenants in Midtown South is slightly different than those in traditional Manhattan office spaces. Tech firms and media companies favor the trendier spaces in Midtown South, according to Bloomberg.
"There's always been a delta between the economics of Midtown and Midtown South," said David Falk, a local real estate expert, told the source. "What's happened is very quickly, before our eyes, Midtown South rents are rising higher than for many buildings in Midtown. Buildings where maybe you'd pay $50 a foot are now getting low $60s."
Businesses hoping to secure affordable Manhattan office space, whether it's in Midtown South or elsewhere, could benefit from working with a provider of commercial real estate listings with significant knowledge of the local commercial real estate market. These professionals can prove to be a crucial partner during a challenging office space search.