Outlook sunnier for Manhattan office sales

March 24, 2010 12:51PM

The Manhattan office market is on its way up, according to a recent investment report from CB Richard Ellis, which projects across-the-board improvements in office investment sales through the end of the year. The report, which cites early-2010 data, says there are market indicators to suggest a rebound. Despite the lengths the market may have to go to a rebound — the report shows that sales volume dropped 91 percent between 2008 and 2009 — CBRE says that investor attitude is changing for the better. “Investors believe that rents are stabilizing,” the report says, noting that February’s average asking rent of $48.78 per square foot is widely thought of as the market bottom, from July 2008’s peak of $71.92 per square foot. In the broader metro area, CBRE says that prices will continue to climb, spurring more investment sales. “By year-end 2010, CBRE econometric advisors forecasts that average New York City metro office rents will increase by 2.2 percent compared to year-end 2009,” the report says. TRD