Midtown South office vacancies hit 7-year low

Manhattan leasing market holds steady as rents continue to soar

TRD New York /
Dec.December 04, 2014 12:01 AM

Office vacancies in Midtown South in November reached their lowest level in seven years, according to a new report from commercial brokerage Cassidy Turley.

The Midtown South availability rate for office space reached 7.5 percent in November, a 0.1 percent month-over-month drop. The overall Manhattan office market did not budge, with an availability rate of 9.5 percent for the third consecutive month.

Richard Persichetti, Cassidy Turley’s vice president of research, pointed to the recent completion of One World Trade Center as contributing to the overall consistency of the Manhattan vacancy rate. The 3 million-square-foot tower brought more than 1.1 million square feet of available space to the market.

“It bodes extremely well that we added One World Trade to our statistics,” Perischetti told The Real Deal.

Manhattan’s average asking rent climbed 1.4 percent, or $0.98 per square foot, to $69.94 in November. That’s the biggest monthly hike in asking rents so far this year.

The asking rent hike was most keenly felt in Midtown South. Rents at the area’s Class A properties jumped nearly 5 percent, or $3.51 per square foot, to $75.29, Cassidy Turley data show. Five of the six Class A buildings with direct available space hiked up rents.

Two new office leases exceeding 100,000 square feet were inked in November. Amazon signed a 17-year deal for a whopping 470,000 square feet at Vornado Realty Trust’s 7 West 34th Street. TD Bank took 200,000 square feet at SL Green’s 1 Vanderbilt. In October, only MUFG Union Bank’s deal for 210,000 square feet at the McGraw-Hill Building fell within that threshold.

Persichetti said he expects a few more large lease transactions to be finalized by year’s end.

“December is a high-volume month,” he said, “as the industry scrambles to wrap up its deals.”


Related Articles

arrow_forward_ios
Anna Wintour of Condé Nast, One World Trade Center and Douglas Durst (Wintour by Dia Dipasupil/Getty Images; 1WTC via iStock; Durst by Patrick McMullan via Getty Images)

Condé Nast wants out at 1WTC. Durst may not be OK with that

Condé Nast wants out at 1WTC. Durst may not be OK with that
Moody's CEO Raymond McDaniel and 1 World Trade Center (McDaniel by Alex Wong/Getty Images; Pixabay)

Moody’s looks to sublease its 1 WTC office

Moody’s looks to sublease its 1 WTC office
4 Times Square (Google Maps, TikTok)

What happens if Trump banishes TikTok, savior of NYC’s office market?

What happens if Trump banishes TikTok, savior of NYC’s office market?
From left: SL Green CEO Marc Holliday, Land & Buildings Investment Management founder Jonathan Litt and Vornado chairman Steven Roth (Unsplash; Land & Buildings Investment Management; Getty)

Activist investor Jonathan Litt is shorting big NYC office landlords

Activist investor Jonathan Litt is shorting big NYC office landlords
WeWork CEO Sandeep Mathrani with WeWork's headquarters at 115 West 18th Street and Twitter CEO Jack Dorsey with Twitter headquarters at 247 West 18th Street (Credit: Google Maps; Getty Images)

Office owners brace for competition — from their tenants

Office owners brace for competition — from their tenants
Twitter CEO Jack Dorsey and 245-249 West 17th Street (Photo by Burhaan Kinu/Hindustan Times via Getty Images)

Twitter, big tenant in Midtown South, says employees can permanently work from home

Twitter, big tenant in Midtown South, says employees can permanently work from home
A rendering of 545 Madison's workspace

Welcome back to your post-corona office. You probably won’t recognize it

Welcome back to your post-corona office. You probably won’t recognize it
From left: Empire State Building, 111 Eighth Avenue and 100 Park Avenue (Credit: Taconic Partners, SL Green) 

Office landlords finding out which tenants are paying up during lockdown

Office landlords finding out which tenants are paying up during lockdown
arrow_forward_ios

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

Loading...