The price of office space has surged nationwide due to a dwindling store of vacant commercial property and picky landlords increasingly keen on attracting well-heeled tenants. Across the country, leases spiked an average of 3.1% in the second quarter, following an increase of 2.8% in the first.
The gains are the highest since 2000, right before the dot-com bust and 9/11 sent rental prices plummeting. The buoyant job market is partially to blame—increased office gigs have driven vacancy down to its lowest point in six years. In Manhattan alone, rents jumped 7.8% overall and more than 10% for particularly choice properties.