Big lease renewals boost second quarter office leasing volume

TRD New York /
Jul.July 06, 2012 01:00 PM

The volume of Manhattan office leasing is up slightly in the second quarter, although not enough to offset the availability rate, according to Studley and Avison Young reports cited by Globe St. The studies credit big renewals for the slight growth, and blame global financial uncertainty for the increased vacancy.

Viacom not only renewed but expanded its lease to 1.6 million square feet at SL Green Realty Corp.’s 1515 Broadway. Morgan Stanley also expanded from a sublease to a 1.2-million-square-foot direct lease at Brookfield Office Properties’ 1 New York Plaza. Citigroup renewed its 475,000-square-foot lease at Boston Properties’ 601 Lexington Ave., and Random House renewed its 361,000 square feet at SL Green’s 1745 Broadway.

Vacancy rates across Manhattan held steady from last quarter. Jones Lang LaSalle put Midtown’s vacancy at 11.5 percent in the second quarter — the same as the first quarter. Midtown South’s vacancy rate was 7.6 percent. Downtown rate increased slightly from  9.6 to 9.8 percent, an increase that Avison Young attributed to the addition of more than 500,000 square feet at Silverstein Properties’ 4 World Trade Center.

“A few tenants may be holding back as concerns about the shaky economy, looming financial sector reform and the outcome of this fall’s election provide cause for caution,” according to Studley’s report. “Nevertheless, companies are not immobilized—they are picking their spots. Interest in appropriately priced quality product in high-caliber buildings with efficient floorplates, prime views and established landlords is strong.” [Globe St.]


Related Articles

arrow_forward_ios

Chicago’s ice-cold office market is finally heating up. But don’t get too excited

50 Rockefeller Plaza and Katten's Chris DiAngelo (Credit: Google and Katten)

Katten law firm moving to Rockefeller Center

An aerial view One World Trade Center in Lower Manhattan (Credit: iStock)

On anniversary of 9/11, the World Trade Center office market is now helping propel Downtown

Clockwise from top left: 733 Third Avenue, 24-01 44th Road in Long Island City, 83 Maiden Lane, and 1745 Broadway (Credit: Google Maps)

These were NYC’s top office leases in August

Clockwise from left to right: 50 Hudson Yards, Farley Post Office redevelopment, 1 Madison Avenue, and Apple CEO Tim Cook (Credit: Hudson Yards, Skanska, Google Maps, and Getty Images)

Apple on the hunt for enormous Manhattan office space

Clockwise from left: 55 Water Street, 195 Broadway, 220 East 42nd Street, 550 Washington Street (Credit: Wikipedia, L&L Holding, SL Green, Curbed)

These were NYC’s top office leases in July

Amazon CEO Jeff Bezos (Credit: Getty Images)

Here are Amazon’s current office and warehouse holdings in NYC — and where it could set up shop next

New heights for Everest as insurer inks North Jersey’s largest lease deal of 2019

arrow_forward_ios