Savills: Effective office yields in New York Downtown exceed 10-year benchmark bond yields by 1.2%
In its recently published report ’12 Cities: Occupying and investing in world city real estate’, Savills considered yield metrics for office space in each of the cities reviewed. In New York City (Downtown sub-market), for instance, headline office rental yields are 5.2%. Allowing for hidden costs borne by the landlord and incentives to tenants, the effective yield is 3.2%. Effective yields exceed benchmark 10-year bond yields in the United States by 1.2%. Globally, the equivalent figures are 4.3%, 3.3% and 0.9%.
Source : October 2015/Savills/New York City/OFF