Manhattan vacancies continue rise

New York /
Jul.July 01, 2008 01:22 PM

Manhattan commercial real estate vacancy rate increased 1.8 percentage points over the past year to 7.1 percent, according to a mid-year report by brokerage Cushman and Wakefield. The vacancy rate reached its highest level since the fall of 2006.

The increase in the vacancy rate was coupled with increasing asking rents, which hit an average of $71.59 at the mid-year point, a 7 percent rise over last year, the report said.

Joseph Harbert, Cushman and Wakefield chief operating officer for the New York metro region, said that both vacancies and rents were increasing because big amounts of higher-quality spaces were becoming available.

“You have some space coming on the market that is more expensive than space going off the market,” he said at the meeting where the report was released Tuesday.

The softness was broad based. Steep increases in the vacancy rate over the first quarter were seen in Midtown, where it increased from 6 percent to 7.1 percent; Midtown South, from 5 percent to 5.9 percent; and Downtown, from 7.2 percent to 7.7 percent.

Leasing activity, too, fell by 2.2 percent to 11.5 million square feet in the first half of the year.

Investment sales were off sharply from the same period a year before, with $13.8 billion closed or under contract, compared with $34 billion last year.

Foreign investors accounted for nearly half of that volume, up from a high of 15 percent in recent years, the report said.

Retail rents remained strong overall, but in some submarkets they were flat or falling, said Gene Spiegelman, executive director of retail services at Cushman and Wakefield.

Soho saw rents spike, but rents fell on Manhattan’s Upper West Side On Broadway from 60th to 86th streets.

“Soho has developed a very strong international appeal,” Spiegelman said. “It is a must have location for brand expansion.”


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
eXp CEO Glenn Sanford (eXp, iStock)
Virtual broker eXp Realty has another record quarter
Virtual broker eXp Realty has another record quarter
Ira Drukier with the Hotel Chelsea (Getty, Patrick McMullan/Getty)
Chelsea Hotel owners sue city for $100M over renovation delays
Chelsea Hotel owners sue city for $100M over renovation delays
RSA's Joseph Strasburg and Judge Lawrence Marks (Getty, Strasburg via Jeffersons Siegel)
Landlord group challenges state eviction ban
Landlord group challenges state eviction ban
Redfin CEO Glenn Kelman (Getty, Redfin)
Pocket listings exclude minority homebuyers, Redfin CEO says
Pocket listings exclude minority homebuyers, Redfin CEO says
(378 West End, 300 West and 567 Ocean Avenue, Getty)
April was best month for new condo sales in 5 years
April was best month for new condo sales in 5 years
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...