Studley: Rents Forge Ahead While Activity Pauses

I went to visit a company called Studley and found this company very interesting. Aside from their small size and more collegial, forward-thinking culture, they also distinguish themselves with a focus on the tenant, especially law firms.

Reading their Market Report on Q1 2006, a couple things have come to mind. First of all, all the focus that other companies might put on the highest end of the office leasing market where rents are as much as $175 and $200 per square foot, serves property owners and puts pressure on tenants at the negotiatiating table. Secondly, many of the major firms that put out market reports must then be serving property owners. Not an unexpected state of affairs.

With Studley's focus on the tenant, I notice in their report more realistic and wholistic analysis of the market, showing more average rental rates of about $50 per square foot, give or take a few dollars in either direction. This corresponds with something a mortgage lender told me at a recent networking event. It also identifies how tenants can win, for instance by moving Downtown or to the suburbs. They also mention how leasing activity slowed by some 25% in the quarter - likely in reaction to the sharp drop in availability rates and subsequent upward trends in Manhattan office rents.

The report is in .pdf format, so the direct link is: http://www.studley.com/blockTools/block-file.ww?id=155&class=ResearchDocumentBlock&propertyName=document&mimeType=application%2Fpdf