Manhattan office vacancy rate climbed in January, according to Cassidy Turley’s monthly market report, reaching 12.2 percent. This 20-basis-point climb, according to the report, is due in part to two major chunks of office real estate to hit the market last month: a 612,000-square-foot space formerly occupied by Pfizer at 685 Third Avenue between 43rd and 44th streets, and a 250,000-square-foot space at 1745 Broadway on the corner of 56th Street. The average asking rent, however, saw a slight month-over-month increase, reaching $48.12 per square foot from $47.66. TRD… [more]
Posts Tagged ‘Downtown’
Overall asking rent for Manhattan office space climbed slightly to $47.73 per square foot in August, from $47.57 per square foot in July, according to CB Richard Ellis’ latest market report. The vacancy rate in Manhattan also showed modest improvement, dropping gradually month-over-month to 13.4 percent, from 13.7 percent. Compared to August 2009, vacancy was down .5 percent. Of the borough’s prime office neighborhoods, the Downtown market struggled the most, showing its slowest leasing momentum since September 2009, as the vacancy rate remained steady at 14.3 percent. Midtown, however, showed promise: 10.55 million square feet has been leased so far this year, up 56 percent from the same time period last year. TRD
The vacancy rate for Downtown surpassed the vacancy rate for Midtown
for the first time in nearly two years as several large blocks of
space were returned to the market in Lower Manhatt… [more]
The Manhattan office market is much healthier than it was a year ago, according to a CB Richard Ellis market report released today. The report, which measures 2010 market activity up until May 1, showed that 6.75 million square feet of office space has been leased so far this year, compared to the same time period in 2009 when 3.45 million square feet had been leased. … [more]
The overall office leasing market remained flat in Manhattan last month with Class A properties showing the most improvement and Class B properties continuing to lag, according to a new report covering April from commercial firm Jones Lang LaSalle (click here to see full report).
Asking rents in Class A properties rose in six of eight submarkets in Midtown and Downtown while Class B rates dropped in five of those eight areas, the report shows.
The uptick in asking rents in select submarkets is a sign of market stabilization, company vice president of research James Delmonte said, but not of a sustained period of rent increases. … [more]
Manhattan office asking rents fell by their largest amount in four months in March even as leasing volume increased, according to data from commercial services firm CB Richard Ellis.
Average asking rents fell by 51 cents per foot in March to $48.27 per square foot, the steepest decline since rents fell by 73 cents in November 2009 to $49.17 per foot, CBRE data shows.
Over the previous three months, the average asking rent in the market fell by an average of only 14 cents per foot. The flattening in the decline in rents was seen as an indicator of stability in pricing.
Matthew Van Buren, executive vice president at CBRE, said the fluctuations in asking rent may just be individual large deals swaying the market. … [more]
The Manhattan office market is on its way up, according to a recent investment report from CB Richard Ellis, which projects across-the-board improvements in office investment sales through the end of the year. The report, which cites early-2010 data, says there are market indicators to suggest a rebound. Despite the lengths the market may have to go to a rebound — the report shows that sales volume dropped 91 percent between 2008 and 2009 — CBRE says that investor attitude is changing for the better. “Investors believe that rents are stabilizing,” the report says, noting that February’s average asking rent of $48.78 per square foot is widely thought of as the market bottom, from July 2008′s peak of $71.92 per square foot. In the broader metro area, CBRE says that prices will continue to climb, spurring more investment sales. “By year-end 2010, CBRE econometric advisors forecasts that average New York City metro office rents will increase by 2.2 percent compared to year-end 2009,” the report says. TRD
CB Richard Ellis’ most recent monthly Manhattan Marketviews report showed disparate office leasing activity in three of the borough’s main office corridors: Midtown, Midtown South and Downtown. Midtown South had “robust leasing activity in February,” according to the report, with 410,000 square feet leased, marking 46 percent more leased space than the five-year monthly average recorded by CBRE. And while the average rent per square foot in the area stayed relatively flat, climbing just 5 cents month-over-month, the overage leasing volume had a positive effect on the area’s office market. Downtown, however, was not so encouraging. The neighborhood saw just 210,000 square feet of leased space, down 46 percent from the five-year monthly average of 390,000 square feet. Midtown, meanwhile, “had a stable month in February,” the report says, falling short of the monthly average by about 29 percent but showing strong gains over the same time period a year earlier. TRD
While there was little or no change in asking rents in Midtown and Midtown South last month, Downtown saw a moderate drop after landlords cut prices in anticipation of higher vacancy rates in the coming months, a new Manhattan office leasing report covering February from commercial service firm Jones Lang LaSalle shows.
The average asking rents in Midtown did not change from January, at $59.43 per square foot, while in Midtown South, the average asking rents rose by 3 cents from the prior month to $43.79 per foot, JLL reported.
But Downtown, asking rents fell by 31 cents in February to $36.97 per square foot, the data show.
James Delmonte, a JLL vice president and director of research, said that for Manhattan, overall pricing has flattened compared to the steep drops seen last year, but Downtown asking rents dipped as landlords expected more available space to be put on the market.
“There are adjustments in pricing ahead of [an] anticipated continued rise in vacancy rates,” he said…. [more]
The volume of new office leasing in Manhattan slipped last month from the 12-month high seen in December but was twice what was recorded in the same period a year ago, a new report released yesterday by commercial firm CB Richard Ellis shows (see full report after the jump).
For Manhattan overall, the 1.94 million square feet leased in January was 12 percent lower than in December, but was more than twice the level recorded in January 2009, when just 920,000 square feet was leased, the report says.
The volume of leasing has been cited as an important indicator of stability in the marketplace, because, brokers say, tenants are more comfortable taking space at current pricing levels.
The leasing volume dropped in all three Manhattan markets in January, but fell the most in Midtown. Meanwhile, in Midtown South there were positive signs for landlords as rental rates rose significantly and vacancy rates fell last month…. [more]
Once considered a viable alternative to pricey Manhattan office space, the New Jersey waterfront is now losing its luster in the eyes of fiscally-minded businesses, according to Crain’s, making 2009 the most dismal the region has seen in two years. The disparity in lease rates between New Jersey waterfront office space, in cities like Weehawken, Hoboken, and Jersey City, and Manhattan is slowly narrowing, leading to a slowdown in activity. After massive asking rent cuts in Lower Manhattan, the rent gap between there and New Jersey dwindled to just $6 per square foot, according to Cushman & Wakefield. As a result, the first nine months of 2009 saw 710,000 square feet of space hit the market with no takers.
Each and every day, the press provides information on companies leasing
office space in Manhattan. The articles provide the asking rent for
space, but fail to provide the reader with the most important
information in the minds of those seeking office space: actual rent,
concessions and the other terms and conditions of the new lease. “Rental rates have come down, and once again New York City is
affordable for commercial tenants,” said Glenn Markman, executive vice
president at Cushman & Wakefield. “A tenant who is in a position to
sign a lease will look back five years from today and realize that they
‘hit the market at the right time.’”… [more]