The Avenue of the Americas/Rockefeller Center submarket has been performing well over the past eight months. After availability peaked at 14.2 percent in March of this year, more than 1 million square feet of positive absorption was posted, and the availability rate dropped to 11.9 percent through November. Overall asking rents are up only 1 Read More
As Macy’s is preparing to kick off the 87th Thanksgiving Day Parade, we look to another Thanksgiving institution, the American Farm Bureau Federation (AFBF) in this week’s column.
The AFBF has been conducting an informal price survey of the cost of a classic Thanksgiving dinner since 1986. According to the AFBF, the average cost of a traditional Thanksgiving meal is down this year $0.44 to $49.04. The biggest contributor to the drop in the meal price was higher turkey production this year, which dropped the average price of the bird by $0.47 compared to 2012. Frankly, I spend more than that on all the items that go into my antipasto on Thanksgiving, so clearly my traditional Italian feast is on the high end of the spectrum. But what does this have to do with real estate?
The Midtown availability rate continued to decline in October, dropping another 20 basis points to 11 percent.
This trend can mostly be attributed to the red hot west side of Midtown, the Fifth/Madison submarket performing well with Class A asking rents approaching $110 per square foot and even the Avenue of the Americas corridor improving Read More
The Midtown West/Columbus Circle submarket has been in the headlines a lot lately.
The area has had good news and some not so good news, like the legal issues over the sale of Worldwide Plaza and the likelihood of Time Warner leaving Columbus Circle for Hudson Yards. But let’s focus on the good news this Read More
The Manhattan office investment market is booming.
With $14 billion in office investment sales volume already recorded this year, the market is slightly below 2012’s total of $14.4 billion. There is also another $4 billion under contract, which is expected to close over the next two months. This additional pending activity will not only surpass 2012 totals, but it is likely to approach 2011 levels when $20 billion was traded.
Life is full of ups and downs. Just ask the New York Jets rookie quarterback Geno Smith, who through the first seven games of his young NFL career has played a great game followed by a less-than-stellar performance. This made me think of the Midtown Class A average asking rent, which started 2013 at $78.01 per square foot but has been up and down throughout the year. Midtown Class A average asking rents are actually down from January by $0.80 per square foot to $77.21. But why is this?
How tight is Midtown South? A simple answer to that question is the market is very tight and considered to be below equilibrium.
With an availability rate of 8.7 percent and asking rents at historical highs for both Class A and Class B space, the market is in high demand. Digging into the numbers further shows that 35.25 percent of Midtown South buildings are fully leased. That percentage may not seem like much, but compare that to Downtown’s 25 percent and Midtown’s 23 percent, and you will see that Midtown South is pretty significantly outperforming the other markets.
In January, I took us on a trip to New York City 100 years ago. This week, we’re going to hop back into the DeLorean, but we’ll jump ahead five years, to October 15, 2018, and head down to Lower Manhattan.
Standing in the middle of what was once known as the World Trade Center Read More
With all of the negative news surrounding the government lately, this week’s Stat of the Week will focus on something positive. During the last U.S. recession, New York City lost 140,700 seasonally adjusted jobs. O.K., so that isn’t a positive. However, the fact that during the recent recovery New York City has added 314,500 nonfarm jobs is definitely a positive. And for those of you keeping count, that is 173,800 more jobs in New York City since the employment peak in 2008. So which industries have done the most recruiting since the recession? I think the best way to answer this question is with another top-five list.
With three quarters in the books and the Manhattan office market strong, the availability rate dropped 20 basis points in the third quarter to 11.2 percent—the lowest since 2008. The overall average asking rent increased $1.41 per square foot to $63.55—the highest since 2008. But how did the three major markets perform in the third quarter?
Currently in Manhattan, there are 68 blocks of available space on the market that are 100,000 square feet and greater—and that’s not even including buildings under construction.
These 68 blocks of space total 15.4 million square feet of the available supply, which accounts for one-third of the total available space in Manhattan. When examining the pricing for these large blocks, the average price equals $65.74 per square foot. Despite the inclusion of subleases in this rental average, this price is actually higher than the Manhattan overall average asking rent by $2.81 per square foot.
Last week was the 12th anniversary of 9/11. These events affected everyone throughout the city but also had a significant impact on the city’s commercial real estate market. I remember gathering data and statistics on companies that had been temporarily and permanently displaced from their buildings downtown. Fast forward to today, when my research team is looking at the growing trend of tenants migrating into Lower Manhattan over the past 20 months.
Since January 2012, 94 companies moved from Midtown and Midtown South to Downtown, which accounts for 37 percent of the 5.6 million square feet of new leases signed during this time. Despite having the highest availability rate of the three major markets at 13.6 percent, Downtown has been in high demand. Of these 94 tenants, almost two-thirds of them were from the TAMI sector (37 percent) and professional services (26 percent) industries. Read More
The Manhattan office market has performed well since the end of 2011, but which submarkets are super-hot since then?
Out of the 17 submarkets tracked by Cassidy Turley, only four of them have benefitted from both a 200-basis-point or higher decrease in availability and greater than a $10.00-per-square-foot increase in average combined Class A/B asking Read More
Are you ready for some football?
The National Football League kicks off its 2013 season this Thursday as the defending Superbowl Champion Baltimore Ravens take on the Peyton Manning-led Denver Broncos. In the spirit of the start of a new NFL season, I figured I would hand out some football-themed awards for the Manhattan commercial real estate market through the first eight months of the year. Read More
Over the past 19-plus months, 115 leases—75,000 square feet and greater—were completed.
These 115 deals (a combination of new leases and renewals) accounted for 22.7 million square feet in leasing activity—44 percent of all space leased since January 2012. But which submarket has seen the most demand for these big blocks of space? Read More