Owning penthouse offices in Manhattan is not as popular as they were years before, due to its declining sales.
According to the New York Times, more than a half-dozen penthouses are now available and they have been for over a year. Land lords, brokers and industry analysts claim this rate is more than it has ever been in previous years.
These empty spots can be blamed on the slow-moving midtown leasing market, which according to the Times, has been at the same 11 percent rate they have been for a while.
Penthouses cost an arm and a leg, with its large and spacious room and eccentric layouts. According to the Times, a Cohen Brothers Realty Corporation report shows that the current average asking rents are $158 a square foot and $113 for lower floors. The CBRE is a commercial brokerage firm.
Although apartments on lower floors may have similar views as those of a penthouse, penthouses are more likely to promote perks like the duplexes on Fifth and Park Avenue, which provides an excellent view of the city.
"We can provide a place where tenants can sit outside and enjoy views of New York that are second to none," David Nevins, Senior Vice President of Leasing for CBRE, told the Times.
Nevins also pointed out that buildings like the Chrysler Building, Bank of America Tower, 30 Rockefeller Plaza and even the Rockefeller Center's skating rink fit those profiles.
He added that in a stronger market, penthouses, which have been on the market since March, could probably sell for $150 a foot. But, due to the unfortunate economic conditions the nation is facing, these spaces will most likely end up selling for about $100 to $125 a foot.
"It's pretty, we know that, but we also understand the realities of the market," he said.
The profiles of tenants most likely to fill these penthouses would be individual in finance, especially managers of family trust or hedge funds.
"Penthouses aren't one size fits all, they're one size fits one," Andrew Levin, a senior vice president of leasing for Boston Properties told the Times.
