Manhattan office market is in a “boomcession”

April 16, 2012 11:30AM

Occupancy and average asking rents grew in the first quarter of 2012, but the volume of office leasing was down, according to data released today by Colliers International. Overall Manhattan asking rents increased to $55.01 per square foot, up from $54.23 per square foot quarter-over-quarter. Vacancy declined, to 5.8 percent, a decrease from 5.9 percent in the previous quarter and from 6.7 percent year-over-year, the numbers show.

However, just 5.1 million square feet of office space was leased in Manhattan in the first quarter, which the report calls, “a significant fall” from the 6 million square feet the previous quarter and 8 million square feet in each of the first two quarters of 2011.

“The New York City real estate market is in the midst of a boomcession,” said Michael Cohen, president at Colliers International. “Certain submarkets are particularly healthy, such as Midtown South, while other areas struggle. But when corporations start to deploy their liquidity and there is a return to historical hiring levels, we are likely to see strength citywide.” — Guelda Voien