Posted Dec 4, 2025, 3:18 PM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
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https://www.crainsnewyork.com/real-e...00-square-foot
Developers race to build as Manhattan office rents reach $300 per square foot
Aaron Elstein
December 4, 2025
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At the turn of the millennium office rents in Manhattan crossed a previously unfathomable threshold.
“'My father predicted we would see rates of $100 a square foot by the end of the century, and people told him he was crazy,” Cushman & Wakefield executive Tara Stacom said in 2000. “Well here we are and here they are.”
Those rates seem quaint now.
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“Companies are willing to pay rents that none of us would ever have anticipated,” said Mary Ann Tighe, New York’s top commercial broker and CEO of CBRE’s tri-state region.
Towers commanding the highest rents include 1 Vanderbilt Ave., 425 Park Ave., the General Motors Building at 767 Fifth Ave., and Citadel’s headquarters building that’s poised to soon rise up at 350 Park Ave. Citadel is paying $300 a square foot for top-floor space at 425 Park.
Tighe said 175 Park Ave., a tower that RXR has been trying to build for several years, has found someone to pay $300 per square foot, though she wouldn’t identify the tenant.
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Unsurprisingly, developers are racing to build towers that can command stratospheric rents, even though the cost to build has soared to $2,000 per square foot or more.
Related Cos. is planning new towers at Hudson Yards because all the space in the massive office complex is filled, said CEO Jeff Blau. His firm is also working on a tower at 625 Madison Ave.
Vornado Realty Trust has dusted off plans that have been around for 20 years to develop a 2 million-square-foot tower on the site of the Hotel Pennsylvania, across the street from Penn Station. BXP is constructing a 1 million-square-foot tower connected to Grand Central Terminal.
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Blau credited Jamie Dimon for unleashing the boom by developing his firm’s 60-story tower at 270 Park Ave. The tower cost at least $3 billion to build and perhaps as much as $5 billion.
“JPMorgan built that building and now everybody has FOMO,” Blau said, or fear of missing out.
JPMorgan’s building measures 1,388 feet high and lords over Park Avenue’s glassy towers, at least for now. That could change once Rudin, Vornado, and Citadel finish 350 Park, which developer William Rudin said would top out at 1,400 feet.
“It’s going to be a little bit taller than JPMorgan’s building,” he said.
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“Office buildings are our factories – whether for tech, creative or traditional industries we must continue to grow our modern factories to create new jobs,” said United States Senator Chuck Schumer.
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