Leasing activity rises on cheaper asking rents

December 09, 2009 05:19PM

Even as new leasing velocity improved in Manhattan last month, average asking rents continued to fall, a monthly report (see below for the full report) released today from commercial service firm CB Richard Ellis shows.

Leasing activity rose to its highest level in three months in November, to 1.78 million square feet as landlords continued to try and entice potential tenants by dropping average asking rents last month by $0.73 to $49.17 per square foot, the report said.

A Manhattan leasing report from commercial services firm Jones Lang LaSalle (see the full report below), also released today, shows the highest vacancy rate in Class A buildings in Midtown in the Columbus Circle submarket, at 17.6 percent.

In Midtown South, the neighborhood with the highest Class A vacancy rate was Chelsea, at 19.4 percent, and Downtown, the Financial District had the highest rate, at 10.9 percent, the JLL report shows. In Manhattan office buildings, Class A asking rents were $59.72 per square foot in November, having fallen from above $80 per square foot at the same point last year, according to JLL. TRD

December 2009 Snapshot

Jones Lang LaSalle for November