The Real Deal New York

Posts Tagged ‘office real estate’

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    From left: Empire State Building, 30 Rockefeller Center and 120 Park Avenue

    New York City office rentals got more expensive in the first quarter of 2011, even as vacancy and absorption rates remained mostly unchanged, according to separate reports released today by Cassidy Turley and Colliers International. Li & Fung’s rental in the Empire State Building, Lazard and Deloitte signing for space in 30 Rockefeller Center and Bloomberg LP’s move to 120 Park Avenue steered the strong market. The average asking rent in Manhattan rose to $50.18 per square foot from $48.62 per square foot, highlighted by a $2.14-per-square-foot jump in Midtown North, according to Colliers. The firm reported an availability rate of 11.7 percent, down 0.1 percent from the fourth quarter of 2010, and just 300,000 square feet of net absorption. TRD[more]

  • Office vacancy reaches 12% in Manhattan

    February 07, 2011 06:13PM
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    Source: Cassidy Turley

    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]

  • Manhattan leasing hits four-year high

    January 11, 2011 10:22AM
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    With asking rents still far below the peaks of 2008, Manhattan office tenants leased up new space at the fastest clip in over four years, a new report covering the fourth quarter from commercial services firm Cushman & Wakefield says. Businesses inked 7.5 million square feet of new office space in the fourth quarter, the most since the third quarter of 2006, and 50 percent higher than the 5 million square feet leased in final quarter of 2009. For the full year, commercial firms leased 26.3 million square feet, up 61 percent from 2009, when companies took 16.3 million square feet. … [more]

  • New York City’s multi-family and office real estate markets have the best outlook of all major metropolitan regions in the U.S., according to commercial real estate services firm Grubb & Ellis, which released its 2011-2015 real estate outlook report yesterday. The city’s retail real estate market, meanwhile, ranked third behind Washington, D.C. and Los Angeles. Nationwide, Robert Bach, a chief economist with Grubb & Ellis, said that 2010’s better-than-expected performance will help spur recovery in 2011. TRD[more]

  • Office tenants in Midtown leased more space in November than in any month since the middle of 2006 as new office leasing rang in at double the monthly average, a new report covering all firms’ deals released today by commercial firm CB Richard Ellis shows.

    “The month’s robust leasing activity — the largest single-month total since June 2006 — was achieved by deals of all sizes across the entire market,” the Midtown report says.

    Tenants struck relocation or expansion deals for more than 2.4 million square feet in Midtown, compared with 1.2 million square feet the month before. TRD[more]

  • Dumbo the new “Silicon Beach”?

    December 06, 2010 03:31PM

    Dumbo is quickly becoming New York City’s “Silicon Beach,” according to Fortune magazine, which ranked the six “hottest” tech companies that have blossomed in the neighborhood, in a list that heralds the neighborhood as an up-and-coming tech center. Companies like digital ad agency Big Spaceship and Etsy, a popular online “hobbypreneur” site, are among the “hot” digital companies named in the neighborhood. … [more]

  • alternate textDowntown office vacancy chart, click image for larger version (source: Cassidy Turley)

    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]

  • New York City office buildings have failed to keep up with the green trend, according to a study from IBM released today, which surveyed 6,486 office workers in 16 cities across the country, and it may be costing their tenants big bucks. While Los Angeles nabbed high marks for its offices’ high energy efficiency, New York City was rated “average” in terms of how it conserves resources in the workplace. … [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 vacancy rate Downtown rose sharply as Goldman Sachs’ former headquarters building, the 1.1 million-square-foot tower at 85 Broad Street, was officially added as available to the leasing market, commercial services firm Cassidy Turley said in its monthly Manhattan office leasing report released today (click here to see full report).

    The vacancy rate Downtown rose by more than a percentage point to 12.2 percent in March from 11.1 percent in February because of the addition, the report says.

    The building also drove Manhattan’s Class A vacancy rate to its highest level in 13 years, the report says, reaching 12.8 percent in March. TRD[more]

  • Downtown Brooklyn office real estate is suffering, according to Crain’s, with just three deals inked last year for 30,000 square feet of space or more. With lowered Manhattan rents putting up a fight and tenants looking to streamline their space, the Downtown Brooklyn market is hurting — and it’s tough to tell when it might rebound, according to Chris Havens, CEO of Creative Real Estate Group in Brooklyn. “The market is a mixed picture, with a vacancy rate that is lower than almost any major office market in America, but it’s a very slow-moving market,” Havens said.


  • Click on chart for larger version

    Landlords Downtown have increased their spending on tenant improvements and free rent in recent months, a new Manhattan leasing report covering February from commercial services firm CB Richard Ellis shows.
    Landlords are spending on average $66 per square foot on making improvements to tenant space Downtown, and giving an average of 10 months of free rent, the report says.
    The free rent levels are the highest of any of the three Manhattan markets since the leasing market began to weaken in mid-2008 and the tenant improvement figure matches the previous high from last year, CBRE data shows.
    At the same time, the report shows average asking rents rising Downtown, as well as in Midtown South, but falling in Midtown.
    For February, CBRE reported average asking rents Downtown rose by 57 cents per square foot to $38.92 per foot; they rose by 5 cents per foot in Midtown South to $41.71 per foot. But in Midtown, the average asking rent fell by 32 cents to $55.75 per square foot. … [more]

  • Manhattan leasing volume dipped in January

    February 10, 2010 03:45PM

    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.

  • A judge ruled today that Adam Hochfelder, founder and chairman of commercial landlord Max Capital Management Corp., will go to trial on fraud charges in a case alleging he misrepresented the value of his real estate holdings to extract loans from business partners, banks and even family members. The decision today will allow prosecutors to move forward on charges against Hochfelder, a noted New York City office building owner. Max Capital Management holdings have included 237 Park Avenue and the Helmsley Building at 230 Park Avenue. Hochfelder once claimed to own $2.7 billion in properties and used that false information to garner millions from unsuspecting lenders, the New York Times reported. The next hearing on the case is set to begin Jan. 15. Hochfelder was first arrested in August 2008 and now faces 58 counts of criminal activity, such as fraud and grand larceny.

  • Commercial property price index drops

    October 20, 2009 10:49AM

    The Manhattan office market isn’t looking good, as Moody’s/REAL Commercial Property Price September Indices for the borough dropped 22.9 percent between the second quarters of 2008 and 2009. The indices track the price changes of commercial real estate in 10 top U.S. markets. This figure is in line with the 21.2 percent national drop on the same scale, as analysts predict that as much as $700 billion in commercial debt could come due by 2013. Dan Fasulo, managing director at Real Capital, said that while commercial lenders look to foreclosure as an option on distressed properties, it’s not a fait accompli. “I think, at some point, if the building is not performing, if it lost a major tenant or rents went down and they can’t pay debt service, [a lender] might foreclose, but these lenders are not going to give away assets for cents on the dollar,” Fasulo said. “They are going to tuck it away in their portfolio.”