If you’re looking for a “bargain” in the world of Manhattan commercial real estate, downtown may be the way to go. Average asking rent for Class A space is $51, compared to $68 in Midtown. That said, you won’t have a wide array of inventory to choose from.
First, fewer than 24 downtown buildings can be classified as Class A, as opposed to the plethora of shiny new buildings in Midtown. Second, the downtown vacancy rate is 7.3% versus Midtown’s 12.7%. If you’re looking for smaller floor plates and an artsy, lofty vibe, it may well be worth the look.
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The article brings up some good points. However, the traffic at midtown with tourism and other items may be better to turn a profit.