2009 ends with leasing burst in Midtown, CBRE says

Click chart for larger version (Source: CBRE)

New leasing activity in Midtown jumped by 34 percent in December from
the prior month, ending the year with an annual volume just shy of the
2008 level, yet despite the strong leasing levels, average asking
rents continued to fall in all Manhattan markets, figures released
yesterday from commercial services firm CB Richard Ellis show.

The volume of new leasing in Midtown last month was 1.6 million square
feet, up from the prior month’s level of 1.19 million square feet, and
was ahead of the five-year monthly average of 1.23 million square
feet. Average asking rents fell by $0.04 per square foot to $56.02 per
foot, while in the Park Avenue submarket, average asking rents fell
sharply by $2.49 per foot to $60.93 per foot, the report says.

For the full year, leasing activity in Midtown was 11.63 million
square feet, off slightly from the 2008 totals of 11.87 million square
feet.

“Renewals and expansions dominated December’s roster of top deals,
while robust new leasing activity across the market fueled the month’s
overall leasing tally,” the Midtown analysis indicates. The other reports
covering Midtown South and Downtown were also released yesterday.

In Midtown South, leasing activity was 320,000 square feet in
December, up from 270,000 square feet in November, while average
asking rents fell by $0.25 per foot to $40.53 per square foot, the
figures show.

In the Downtown market, leasing activity declined in December by 12
percent to 280,000 square feet from 320,000 square feet in November,
and average asking rents fell by $0.51 per foot to $38.12 per square
foot, the CBRE statistics reveal. TRD