Rents in the better Class A office buildings in Midtown Manhattan have held their own much more than expected. Prices in these buildings have only dropped 10-15% since early 2020, with landlords offering more generous concessions such as free rent and increased tenant improvement allowances. In modern Class A office buildings (post-2010 construction) such as One Vanderbilt and the Hudson Yards complex, commercial real estate demand has been strong, and developers have had no difficulty renting office space in these trophy Class A buildings.
So, if your business or organization is in the market for Class A office space, and you’re disappointed by not being able to negotiate deep discounts on Midtown Manhattan office space, what neighborhoods offer deals for comparable space?
Lower Manhattan: A variety of affordable Class A office space
Lower Manhattan offers a wide selection of Class A and Class B office space for lease, priced significantly lower than similar properties in Midtown Manhattan. Many business owners are unaware that government incentive programs are such as the Community Renewal Program (CRP) and Relocation Assistance Program, significantly reduce the cost of leasing a Lower Manhattan office.
For tenants looking to add a prestigious business address to their calling card, Lower Manhattan is a great choice. Just a stone’s throw from the Financial District is the World Trade Center complex, which offers modern commercial office space with state-of-the-art amenities at One World Trade Center, 7 WTC, 3 WTC, and 4 WTC. These contemporary skyscrapers are priced significantly lower than Hudson Yards, One Vanderbilt, or most modern Midtown office buildings.
For the most part, the Financial District consists of traditional, older office buildings, similar to what you might find around Grand Central Station. However, much of the available office space has been retrofitted in recent years to more modern standards. Many of the available spaces now have exposed ceilings, and a loft-like, industrial look that is in such demand. In FiDi you can lease a cool industrial style office while still being in a Class A office building with all the associated amenities.
Where to find quality office space in FiDi
Costs are always a significant consideration for any business looking to make a long-term commitment, such as a multi-year office lease in Manhattan. So, where are the best values available in the Financial District?
The 22-story building at 11 Broadway is managed by Braun Management and is priced aggressively for well-maintained Class B office towers. Also known as Bowling Green Offices, the property features 432,348 square feet of office space and was completed in 1898. The building was expanded in 1921 and was named a New York City Landmark in 1995. Amenities include 24/7 building access, UPS and FedEx drop-off service, upgraded elevators, bathrooms, corridors, and a renovated marble-floor lobby. Floorplates range from 4,500 to 25,000 square feet and can accommodate tenants of all sizes – the tenant roster includes Flatiron School, Wall Street Services, and the New York State Department of Motor Vehicles. Asking rents at 11 Broadway range from $42-$50 per square foot. Asking rents depend on the amount of work required, the length of the lease, the credit of a potential tenant, and other factors.
The Class B, 1908-built property at 160 Broadway is also owned and managed by Braun Management and features 145,000 square feet of FiDi office space. Previously known as the Lawyers’ Title Insurance and Trust Company Building, 160 Broadway connects to 6 Liberty Place and 6 Maiden Lane via their ground-floor lobbies. Amenities include on-site messenger service, on-site management, 24/7 access and security, and an on-site McDonald’s restaurant. Tenants include United Equities, Raskin & Kremins, and New York Acupuncture and Chiropractic, among others. Asking rents start at $40 per square foot, depending on the lease terms.
80 Broad Street
The Class 423,403-square-foot building at 80 Broad Street offers exceptional value for office tenants. The Class B property boasts a brand-new, 24/7 attended lobby and other building-wide upgrades. The prebuilt office spaces available are incredibly high-quality, with extensive use of glass and concrete floors. The ownership, Broad Street Development and Invesco, is hands-on and tenant-friendly.
Amenities include four sides of large windows offering views of Lower Manhattan, floor plates ranging from 7,500 to 15,000 square feet, surface parking, an attended lobby, bike storage, and Zuul food delivery service. Asking rents range from the high $40s per square foot to the $50s per square foot, depending on the condition and location of the space and other factors. Current tenants at 80 Broad Street include Redmond Law, Goldstein Hall, Malkin & Ross, and Forte Capital Group. On-site retailers include Gregory’s Coffee, DIG, and Bolton’s Restaurant.
14 Wall Street
A well-known landmark Class A office building, 14 Wall Street is also known as the Former Bankers Trust Building. The 37-story, one-million-square-foot Fidi office tower has a modernized lobby and offers an inventory of space ranging from 8,000 to 40,000 square feet. It was completed in 1912 and was fully renovated in 2008. It provides an unrivaled location right across the street from the New York Stock Exchange and diagonally across from the original JPMorgan Chase headquarters.
Amenities at the building include 24-hour access, a secured lobby, an exclusive conference center, bicycle storage, an Equinox gym, TJ Maxx on-site, and immediate proximity to several hotels, high-end retailers, and restaurants. Asking rents at 14 Wall Street start in the $40s per square foot, while tenants include NYU Langone Health, Empire BlueCross BlueShield, FDM Group, Rose Grove Capital, and Hinckley Allen.
For tenants looking for exceptional value who are willing to go just a bit north of the Financial District, 15 Maiden Lane is worth examining. The building is somewhat of an anomaly. It is a real loft-like property in a neighborhood featuring primarily traditional office buildings. The 20-story, Class B property boasts exposed ceilings more than 11′ high. This gives available space an industrial look. The 1908-built property offers probably the most unique loft-like office space south of City Hall. Moreover, building owner Heller Properties takes great pride in the building and maintains it immaculately.
The details make this building special, such as the tile floors in the common corridors and the artwork showcased throughout. Asking rents at 15 Maiden Lane are also extremely reasonable, and the tenant roster is also impressive: BerlinRosen, Rosen Leonard, Cerebra Metrics, SMC International Group, and Altrum are just a few of the companies leasing office space in the building.
Are you thinking of setting up your business in a convenient location in Manhattan? Are you looking to lease space in a modern building offering state-of-the-art amenities? To learn about available office or retail space, call Metro Manhattan Office Space at (212) 444-2241 or email us at firstname.lastname@example.org.