Manhattan leasing velocity best in 18 months, CBRE says

TRD New York /
Aug.August 10, 2009 05:25 PM

Midtown leasing velocity beat its five-year average for the first time in 18 months while the availability rate of office space improved slightly for only the second time since late 2007, according to a Manhattan monthly leasing report from commercial services firm CB Richard Ellis released today.

There was 1.58 million square feet leased in Midtown in July, up from 1 million in June, the report said, besting its 60-month average of 1.32 million square feet.

The increase in leasing was attributed in part to the continued decline in rents.

“The fact that pricing is getting to be more and more palatable just means that it takes the edge off… the amount of time that it might take for landlords and tenants to come to an agreement,” Pamela Murphy, senior vice president for research at CBRE’s tri-state region, said during a conference call covering the report this afternoon.

Big deals were also a large part of the story last month. There were four leases over 100,000 square feet in Midtown that together made up 57 percent of all lease deals over 100,000 square feet done this year, Murphy said.

Availability dropped in Midtown to 15.2 percent, from 15.4 percent in June, the report said, but still far above the rate of 9.1 percent a year earlier.

Overall, Manhattan saw its availability rate improve modestly to 14.1 percent in July from 14.2 percent in June, compared to 9.3 percent in July 2008. At the same time, average asking rents fell to $52.43 per square foot in July from $53.35 per square foot in June, while a year earlier prices were averaging $71.92 per square foot.

Manhattan saw positive absorption of 310,000 square feet in July, compared with a negative absorption of 460,000 square feet in June and negative absorption of 1.05 million in July 2008, the report showed.

Peter Turchin, executive vice president at CBRE, said during the conference call that despite the increase in leasing activity, tenants still have the upper hand.

“It is nice to see a little positive absorption, but we are not in a place yet which we really consider as equilibrium in terms of availability,” Turchin said.


Related Articles

arrow_forward_ios
As widespread protests sweep the country, the real estate industry reflects on its decades-long support of the NYPD (Photo illustration by Alexis Manrodt for The Real Deal, Getty, iStock)

As Black Lives Matter protests rage on, NY real estate bleeds blue

As Black Lives Matter protests rage on, NY real estate bleeds blue
Mayor Bill de Blasio and Gov. Andrew Cuomo (Getty, Paul Dilakian)

Despite looting, NYC reopening on track: Cuomo

Despite looting, NYC reopening on track: Cuomo
(Photos by Sylvia Varnham O'Regan, Getty)

After looting, BIDs reverse guidance on boarding up stores

After looting, BIDs reverse guidance on boarding up stores
“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think

“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think

“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think
Clockwise from bottom left: Robert Reffkin of Compass, John Gomes, Scott Rechler of RXR Realty, Rich Barton of Zillow, Gary Keller of Keller Williams and Don Peebles of The Peebles Corporation (Getty)

“America is in crisis:” Real estate leaders address George Floyd protests

“America is in crisis:” Real estate leaders address George Floyd protests
A mass timber project in Cleveland is now under construction and could be the nation’s tallest when completed. Harbor Bay Real Estate Advisors’ Intro development will rise nine stories with 298 residential units (Credit: Harbor Bay Real Estate Advisors)

Mass timber project in Cleveland could be nation’s tallest

Mass timber project in Cleveland could be nation’s tallest
Joy Construction’s Eli Weiss (left), Maddd Equities’ Jorge Madruga (top), and Drew Katz with 20 Bruckner Boulevard in the Bronx (Getty; Google Maps)

“Dream” comes true for long-vacant Bronx ice house

“Dream” comes true for long-vacant Bronx ice house
“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space
arrow_forward_ios

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

Loading...