Financial firms are driving up rent at trophy properties

Financial firms are still willing to pay a lot of rent for offices at trophy properties, according to the New York Post.

According to a new report by brokerage JLL, 25 properties top $100 per square foot, with three of the buildings asking $200 per square foot for higher floors and penthouse space. Among the top 25 properties are Tishman Speyer’s 520 Madison Ave., Blackstone’s Park Avenue Tower at 65 E. 55th St. and Solow’s 9 W. 57th St. Demand for these buildings from hedge funds and other firms is so high that the average asking rent is $144 per square foot, up 4% from $138 per square foot in September.

New buildings at Hudson Yards have also helped to boost rents. Law firm McKool Smith signed a lease for more than $100 per square foot at Brookfield’s upcoming 1 Manhattan West, while law firm Cooley signed up for space at Related’s 55 Hudson Yards for a similar price.

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