Monday, March 26, 2007

Another NY Trophy Office to Hit the Block

The Daily News reports that Tishman will put their Lipstick Building on the market via CBRE in the coming weeks. The article says they expect bids of nearly $600 million, which would be more than $1,000 psf for the 587,000 square foot tower.

The most interesting part is that the article actually used some real, factual data. That is, citing the annual NYC Class A office rental rate growth in 2006 was an astonishing 35%. And as of the end of February, 2007 growth seems to lag that pace, as year-to-date growth is about 4%. Still, NY rent growth is far ahead of the rest of the nation, as expected.

Many experts predicted an approximate 15% increase in rents city-wide for 2007, so it will be interesting to read of any revisions. I'm predicting 20% on the year.

(h/t The Real Estate)

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