The Real Deal New York

Manhattan tech leasing tops 1M sf for 9th consecutive year

A weekly feature bringing you the industry's latest intel
By Christian Bautista | October 26, 2018 05:30PM

(Credit: iStock and Pixabay)

According to this week’s market reports, Manhattan tech leasing topped one million square feet for the ninth consecutive year and bad landlords cost taxpayers $300 million per year.

Residential
Rentals | Regional Plan Association
Bad landlords, defined as property owners who cut corners on maintenance and harass tenants, make up just two percent of owners in the city. However, in spite of their status as a minority, they have a significant impact on the city’s economy. They cost taxpayers about $300 million per year, or nearly $100 in taxes for each New York City household, to cover expenditures relating to evictions and violation inspections and repairs, according to the Regional Plan Association. It is estimated that there are 1 million New Yorkers, including 250,000 children, who live in buildings owned by bad landlords. Read the report here.

Sales | MNS
In the third quarter, the median new development sales price in Manhattan rose 11.2 percent on a year-on-year basis to settle at $2.64 million. Gramercy Park and Tribeca were tied for the highest number of sponsor unit sales, with each neighborhood accounting for 14.5 percent of the 248 total sales in the borough. The biggest bargains were in the Financial District, which registered an 11.5 percent quarter-on-quarter median sales price drop to settle at $3.48 million. Read the report here.

770 Broadway (Credit: VNO)

Commercial

Tech-30 Report | CBRE
Leasing velocity in Manhattan’s tech sector topped 1 million square feet for the ninth consecutive year. At the end of the third quarter, tech leasing in the borough reached a total of 1.6 million square feet. The leasing activity coincided with job growth in the city’s tech sector. In the past two years, the city posted a 12.4 percent increase in tech jobs. Midtown South is the most desired landing spot for tech companies, with tech tenants paying $88 per square foot as of the second quarter, a 27 percent premium over the overall Midtown South average taking rent. Read the report here.