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

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]

From the February issue: The high volume of leasing in recent months, fueled in part by tenants signing early renewals at sharply reduced prices, could come back to bite the market next year, some industry experts said. Tenants with two and three years remaining on their leases — and sometimes even four years — are signing renewals early, said Bruce Mosler, CEO and co-chairman of commercial services firm Cushman & Wakefield. “We are seeing, I think, a push to market … to take advantage of the capitulations in rents,” he said. “Which I think is creating demand in this market, and I think it will [reduce] demand in ’11 … unless we see some job growth again.” However, some brokers did not expect the same elevated levels this year. “I don’t think January will continue at the same level,” Howard Rosen, regional managing director at commercial firm Grubb & Ellis New York, said in an interview. “As far as I am concerned, the jury is out, and I don’t see job creation in Manhattan.” [more]

From the October issue: On paper, at least, the Flatiron District would appear to possess all
the trappings of a bustling, mixed-use area for commercial real estate:
Centrally located (check); moderately priced (check); good restaurants
and sophisticated architecture (check and check). But at just over 19 percent, the district also boasts one of the
highest office availability rates (which measures the percentage of
space that is available for lease, or will be available within the next
12 months) in Manhattan. And real estate experts are grasping for
explanations. According to a report by the commercial brokerage CB Richard Ellis, the
availability rate in the Flatiron District climbed 0.2 points in August
to 19.3 percent. In comparison, the neighboring districts of Chelsea
and Union Square had rates of just 11.6 percent and 10 percent.

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.’” Comments

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