Midtown Has 2nd Most Expensive Office Market In U.S.: Study

MIDTOWN MANHATTAN, NY — An area of Midtown Manhattan known for high-rise office towers is one of the most expensive commercial real estate markets in the country, according to a new study.

With an average sales price fetching $1,260 per square foot in Midtown's Plaza District, the market came it at No. 2 on commercial real estate blog Commercial Cafe's list of the 100 most expensive office markets in the United States. The district — which real estate types generally define as between 42nd Street and 59th Street from Third to Seventh avenues — was ranked behind only Mountain View, California.

Commercial Cafe formed its rankings by analyzing commercial real estate sales for each market between Jan. 1 and Dec. 31 in 2019. The study only included deals for properties with more than 25,000 square feet of space and only included markets with more than three sales.

The Plaza District's strong numbers were driven by two high-priced sales at the same building. The Coca Cola building at 711 Fifth Ave. sold for $909 million in August only to sell for $955 million one month later.

Two other Manhattan real estate markets made Commercial Cafe's rankings. Gramercy came in at No. 5 with an average price per square foot of $975 and Chelsea ranked No. 9 with an average price per square foot of $857. No other markets in New York State made the top 100.

Read the full Commercial Cafe study here.