Midtown availability highest since 1994

The availability of office space for lease in Midtown is
14.2 percent, the highest it has been since July 1994, according to the April market
report from CB Richard Ellis. The average asking March rent has dropped 23
percent year-over-year, to $65.59 per square foot from $85.61 per
square foot. Most space in Midtown has been repriced
to meet new market norms, with prices dropping an average of 11 percent
in March from February. Leasing activity has also dropped to less than half of
the five-year monthly average of 1.36 million square feet, according to
the report. 

The outlook was slightly better in Midtown South, where fewer spaces had been repriced and asking rents had fallen only $1.28, to an average of $47.90 per square foot. But asking rents are likely to drop at a quicker pace in the coming months, the report said. Availability in the submarket increased 0.4 percent in March to 13.4 percent.

The availability rate was lower in the Downtown submarket than in the other submarkets, standing at 10.5 percent compared to 8.5 percent at the same time in 2008. Prices Downtown dropped by an average of 5 percent in March, and the area’s average asking rent fell $0.47, to $43.17 per square foot. TRD