Midtown availability highest since 1994

TRD New York /
Apr.April 13, 2009 04:08 PM

The availability of office space for lease in Midtown is
14.2 percent, the highest it has been since July 1994, according to the April market
report from CB Richard Ellis. The average asking March rent has dropped 23
percent year-over-year, to $65.59 per square foot from $85.61 per
square foot. Most space in Midtown has been repriced
to meet new market norms, with prices dropping an average of 11 percent
in March from February. Leasing activity has also dropped to less than half of
the five-year monthly average of 1.36 million square feet, according to
the report. 

The outlook was slightly better in Midtown South, where fewer spaces had been repriced and asking rents had fallen only $1.28, to an average of $47.90 per square foot. But asking rents are likely to drop at a quicker pace in the coming months, the report said. Availability in the submarket increased 0.4 percent in March to 13.4 percent.

The availability rate was lower in the Downtown submarket than in the other submarkets, standing at 10.5 percent compared to 8.5 percent at the same time in 2008. Prices Downtown dropped by an average of 5 percent in March, and the area’s average asking rent fell $0.47, to $43.17 per square foot. TRD

Related Articles

(Image by Wolfgang & Hite via Dezeen)

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

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Breather CEO Bryan Murphy (Credit: LinkedIn and iStock)

Breather bloodbath: Flex-office startup fires at least 10% of staff

The Tel Aviv Stock Exchange (Credit: Getty Images)

All Year’s Israeli bonds tumble on $41M loss

Brooklyn Point at 138 Willoughby Street and Extell Development’s Gary Barnett (Credit: Alistair Gardiner for The Real Deal)

And you get an incentive! Extell offers to pay carrying costs at Brooklyn’s tallest tower

225 Park Avenue South, Buzzfeed CEO Jonah Peretti and Facebook CEO Mark Zuckerberg (Credit: Getty Images)

The Midtown South home of Facebook, Buzzfeed asks up to $800M

According to a lobbyist, the REBNY is not planning to attend Governor Andrew Cuomo’s birthday party (Credit: Getty Images, iStock)

Big Real Estate facing new limits on NY state campaign contributions