Downtown office market leasing activity strong, even as vacancy rate climbs

New York /
Oct.October 28, 2010 11:00 AM

From left: 85 Broad Street, 70 Pine Street, One New York Plaza and Elizabeth Berger, president of the Alliance for Downtown New York (left two photos, source: PropertyShark)
 

Lower Manhattan office leasing activity through the first three quarters of the year has continued to outpace 2009, according to the Alliance for Downtown New York’s quarterly real estate market overview, even as third-quarter data shows moderate negative momentum compared to the same quarter a year earlier.

This year’s leasing activity is up 16 percent, compared to the first three quarters of 2009, according to the report, with 2.4 million square feet leased so far in 2010. In the third quarter alone, nearly 1 million square feet was leased. This marked the highest level of quarterly activity seen since 2008, according to the report, as average asking rents dropped to $39.08 a square foot, down from $42.01 during third-quarter 2009.

Despite this high level of leasing activity, the vacancy rate actually climbed to 12.1 percent, up from 9.9 percent during the same time period a year earlier. This increase may be due to an influx of office inventory during the past quarter, according to the report, including 85 Broad Street, 70 Pine Street and One New York Plaza — which, alone, added more than 600,000 square feet to the market.

Another report released earlier this month from Cushman & Wakefield indicated a similar phenomenon across the entire borough, noting that while leasing activity has been strong, vacancy has been on the rise. TRD

 

Related Articles

arrow_forward_ios
Tribeca Associates managing partner Mark Gordon. (Moxy, LinkedIn via Gordon)
Mark Gordon’s Tribeca Associates walks away from FiDi Moxy Hotel
Mark Gordon’s Tribeca Associates walks away from FiDi Moxy Hotel
The Watson Hotel at 440 West 57th Street (Google Maps)
Developers already eyeing commercial-to-resi conversions
Developers already eyeing commercial-to-resi conversions
ASG Equities' Raymond Gindi and Century 21 25 Church Street (Photos via ASG, Google Maps)
Landlord offering concessions to lease up Century 21’s old FiDi store
Landlord offering concessions to lease up Century 21’s old FiDi store
40 Rector Street and Seth Pilevsky (Photos via Google Maps; Literally Stories)
Mid-market sales fall off after strong start to 2021
Mid-market sales fall off after strong start to 2021
Interior and exterior renderings courtesy of Urbanspace.
Urbanspace inks lease for Financial District food hall
Urbanspace inks lease for Financial District food hall
Cindat Capital Management CEO Greg Peng and Hersha Hospitality Trust CEO Jay Shah with 51 Nassau Street (Google Maps)
7 Manhattan hotels head to auction block
7 Manhattan hotels head to auction block
84 William Street with Vanbarton Group's Gary Tischler and Richard Coles (Google Maps)
Vanbarton takes control of Prodigy Network’s William Street hotel
Vanbarton takes control of Prodigy Network’s William Street hotel
 8 Spruce Street and Brookfield's Bruce Flatt (New York by Gehry, iStock, Brookfield)
Bad year: 1 in 5 units at Gehry skyscraper goes vacant
Bad year: 1 in 5 units at Gehry skyscraper goes vacant
arrow_forward_ios

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

Loading...