CBRE research study: "Premiums of the Park"

"Premiums on the Park," a study of the higher Manhattan office rents for properties adjacent to five parks that have undergone significant improvements in recent years compared to similar quality buildings a block away, was released today by CBRE Global Research and Consulting. The report finds that, on average, office properties bordering on the parks command 44% higher rents than comparable buildings one block away. The CBRE paper studied five Manhattan parks and their effect on these buildings: Battery Park, Bryant Park, The High Line, Hudson River Park and Madison Square Park. Bryant Park had the biggest percentage increase in higher rents for buildings bordering it, 63%, compared to similar nearby office buildings; Madison Square Park was second at 54% higher; The High Line was third at 51% higher; Battery Park followed at 39% higher, while Hudson River Park was 14% higher. "These parks clearly provide an economic benefit to landlords, including increased NOI, as well as an economic benefit to the City of New York," said Pamela Murphy, senior vice president, CBRE Research. "They also add to the quality of life for employees in the vicinity of the parks, who can enjoy their amenities. The parks make Manhattan a more pleasant place in which to work and live." The report also finds that along with increased commercial real estate activity, these parks have demonstrated their intrinsic economic value to office property developers looking at future development projects, including green space plans at such locations as Hudson Yards.