The Real Deal New York

Lower Manhattan office concessions rose 42% in 2017

A weekly feature bringing you the industry's latest intel
By Christian Bautista | May 23, 2018 02:30PM

Lower Manhattan office buildings (Credit: Ken Lund via Flickr)

Lower Manhattan office buildings (Credit: Ken Lund via Flickr)

Residential

Rentals | RentHop

Apartments near subways stops are getting cheaper. Between February and April, around half of the areas near Manhattan subway stations saw declining rental rates. This includes 34th Street-Herald Square (8.2 percent year-on-year drop to $3,350) and Chambers Street (10.2 percent drop to $3,550). The trend also covered Brooklyn, with many stops in Greenpoint, Williamsburg, Bushwick and Bedford-Stuyvesant posting year-on-year declines. Read the report here.

Sales | Olshan

There were 21 contracts signed in Manhattan at $4 million and above between May 14 and 20. Out of that total, 12 properties were sold by developers. The most expensive contract for the week was for a unit at Macklowe Properties and CIM Group’s 432 Park Avenue. Unit 93A was sold with a last asking price of $40.75 million. The second most expensive sale, meanwhile, was for Unit 16B/17AB at 211 Central Park West, which was asking $26.5 million. Read the report here.

Commercial

Space Matters Occupancy Report | Cushman & Wakefield

Three Manhattan neighborhoods led the country in the value of total office concessions. In 2017, Lower Manhattan posted a 42.2 percent hike to $134 a square foot in concessions, with the value of tenant improvement allowances at $80 per square foot and free rent at $53 per square foot. Downtown was followed by Midtown at 32.7 percent ($167 a square foot) and Midtown South at 31.6 percent ($132 a square foot). Brooklyn’s office market also registered a 10 percent increase in concessions to $35 a square foot. Read the report here.

Real Estate Outlook | Transwestern

The average asking rent for office spaces in Manhattan stood at $74.04 a square foot in the first quarter, up three percent from the same time last year. The figure is almost three times the national average, which is at $25.66 per square foot. Currently, the total office inventory in the borough is at 43.9 million square feet, with 17.2 million square feet of office space under construction. The vacancy rate is at 9.1 percent. Read the report here.