19 percent of southern Plaza district Class A space up for grabs

TRD New York /
May.May 04, 2009 01:12 PM

Nearly a fifth of the 15 million square feet in Class A buildings in the southern portion of The Plaza submarket is available for lease, according to commercial tenant advisory firm Studley.

Nearly 3 million square feet, or 19.3 percent of the total Class A
available space in Manhattan, was on the market in the neighborhood between
Fifth and Second avenues and 50th and 54th streets, according to the
firm’s first-quarter leasing report. The northern half of The Plaza District is defined as Fifth to Second avenues between 54th and 60th streets.

Overall in Manhattan, the firm predicted the availability rate for all types of office space could hit the same level.

“By now, severity has become a foregone conclusion — rents are likely to fall by 20 percent to 40 percent and the availability rate could eventually approach 20 percent,” the report says.

The report calls the current downturn a “Class A recession,” noting that 198 blocks of space larger than 20,000 square feet, totaling 11.5 million square feet, were made available for sublet in Midtown since October.

The highest availability rate was in Downtown Class A space, which was at 19.8 percent in the first quarter. The tightest significant submarket was Class A buildings Downtown south of Vesey and Fulton streets, with a rate of 7.1 percent.

The highest asking rents in Manhattan were $101.14 per square foot for Class A Midtown South buildings, while the lowest was $42.09 per square foot in all classes of the southern portion of the Downtown market, which is south of Vesey and Fulton streets, the report said.

Related Articles

Breather CEO Bryan Murphy (Credit: LinkedIn and iStock)

Breather bloodbath: Flex-office startup fires 17% of staff

Stephen Levin, REBNY's Jim Whelan and Brad Lander (Credit: Getty Images)

The bill that won’t die: Will commercial rent control finally pass?

Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank’s $3B payout to WeWork’s investors is delayed

John Legere (Credit: Getty Images)

WeWork reportedly in talks to hire T-Mobile exec as CEO

(Credit: iStock)

Small Talk: Every community meeting. About every development project. Ever.

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill