Richard Persichetti

Stat of the Week

Stat of the Week: 12.3 Million Square Feet

49 leases this year totaled 12.3 million square feet.

As we all sit around dreaming of the large gifts on our holiday wish-list, what better way to wrap up the year than by looking at the big leases for Manhattan – the large gifts of the real estate world. There have been 49 leases greater than 100,000 square feet signed throughout Manhattan so far this year. Although this is slightly off the pace of the 56 large leases signed in 2013, I expect a few more big deals to be signed before the end of the year, having 2014 approach those stellar 2013 numbers.

This year’s 49 leases total over 12.3 million square feet, with an average deal size over 252,000 square feet. Despite the fact that in 2014 there were 12 leases signed over 350,000 square feet —four more than all of 2013—the average deal size is down from the 2013 average of 263,000 square feet. Of the 49 leases signed, two-thirds of them were completed by Manhattan’s “big three” industries; the financial services, TAMI and professional services sectors took down 11 big blocks of space each. Read More

Stat of the Week

Stat of the Week: 7.3 Million Square Feet

There's 7.3 million square feet of available sublease space.

By the end of August this year, Manhattan’s available sublease supply reached a recent low of 6.7 million square feet, accounting for only 16.2 percent of the total available supply. During this value-driven real estate cycle, sublease space has been in high demand, and the market actually shed 10 million square feet of sublease space since 2009. But over the last three months, available sublease space has been on the rise, as over 630,000 square feet was added to the market. A total of 18 blocks of space greater than 35,000 square feet hit the market since August, bringing the sublease supply back up to over 7.3 million square feet. This increase means that sublease space now accounts for 17.5 percent of the total available supply—right back to where it was at the end of 2013.

Midtown’s available supply has been affected the most by this influx of subleases, as 13 of the 18 large blocks ranging from 35,000 to 300,000 square feet are located there. These spaces have increased the sublease supply by more than 680,000 square feet to over 4.8 million square feet. Sublease space now accounts for 19.2 percent of Midtown’s available supply, up from a low of 16.3 percent earlier this year. Read More

Stat of the Week

Stat of the Week: 10.3%

10.3% of office leasing in Manhattan go to retailers.

Next week, the International Council of Shopping Centers (ICSC) kicks off its annual New York City convention, which will be held at the Jacob Javits Center for the first time. As retailers and real estate professionals meet to schmooze, discuss business and close deals, let’s take a look back over the past two years at Read More

Stat of the Week

Stat of the Week: 15.2% Jump in Rents

Your Thanksgiving dinner is a lot more stable than your rent.

This week is one of my favorite weeks of the year. Thanksgiving kicks off the holiday season, it is a three-day workweek and it is time for the second annual Thanksgiving-dinner-themed stat of the week. Last week, the American Farm Bureau Federation (AFBF) released its annual price survey for a Thanksgiving dinner for a party of 10, and the results proved relatively stable. The price of a Thanksgiving meal has steadied at the $49 mark for the last four years, increasing only 37 cents from last year’s average of $49.04 to $49.41. Despite the average price of a 16-pound turkey dropping 11 cents this year, this was compensated by an increase in the price of potatoes and dairy products.

While the price of a Thanksgiving dinner has remained steady, net effective rents throughout Manhattan have been rising significantly this year compared to 2013. Despite overall Manhattan asking rents steadily increasing 7.1 percent year-over-year to $68.96 per square foot, net effective rents jumped 15.2 percent to $57.68 per square foot. In 2013, the starting rent for all classes of space throughout Manhattan averaged $56.99 per square foot, but is up 12.2 percent in 2014 to $63.97. Concessions throughout Manhattan have remained stable compared to last year.  Read More

Stat of the Week

The 45% Spread: A Decade Analysis, Part II

Pre- and post-1970 office figures.

Last week we looked at the aging of Manhattan office properties constructed pre- and post-1970, and uncovered that the pre-1970 buildings have a lower availability rate of 8.9 percent. This week, we will further break down the market and determine which of the three major markets and 17 submarkets are outperforming or underperforming the rest of the market based on the same pre- and post-1970 construction metrics.

Examining the three major markets—Midtown, Midtown South and Downtown—the Downtown market has the lowest pre-1970 availability rate, while Midtown South has the lowest post-1970 rate. Downtown edged out Midtown South in the pre-1970 category with a 7.8 percent availability rate compared to 7.9 percent. Midtown lags the rest of Manhattan with a pre-1970 availability rate of 9.3 percent. From a post-1970 construction standpoint, Midtown South has the lowest availability at 0.5 percent; this statistic is misleading, however, as only 6.6 million square feet has been built since 1970 in this market. Midtown’s post-1970 availability rate sits at 10.9 percent, while Downtown has the highest availability at 14.1 percent. Read More

Stat of the Week

Stat of the Week: 8.7% Availability – Decade Analysis Part I

Availability in pre-1970 buildings is down 8.7% from a year ago.

With the opening of One World Trade Center last week, what better time than now to survey the aging building inventory in Manhattan? Since two-thirds of the inventory for 100,000-plus-square-foot office properties was constructed prior to 1970, I figured it would be a good litmus test to analyze buildings built pre- and post-1970.

In a flight to value real estate cycle, like the one Manhattan has been in over the past four years, it is no surprise that buildings built prior to 1970 have a lower availability rate than the newer, more modern ones built after 1970. A shift in the demand landscape has played a major role in this cycle. TAMI-type tenants are looking for space in older buildings to save on real estate expenses, leaving additional capital to build-out their space. Read More

Stat of the Week

Stat of the Week: $105.61 Per Square Foot

In the Plaza District it's all about the Benjamins

Since peaking at 13.2 percent in April of this year, the Plaza District’s overall availability rate finally began to drop. At 11.2 percent, availability is down 200 basis points in the last five months, as the most expensive submarket in the country finally had some significant activity.

Despite the Plaza District’s availability rate being significantly above the overall Midtown rate of 9.9 percent, and tied for the second highest availability rate in New York City, behind only the Grand Central submarket, Class A asking rents continue to rise in the submarket. Plaza District average Class A asking rents reached $116.28 in the third quarter, and are just $0.57 per square foot off the historical-high rent recorded in 2007. Read More

Stat of the Week

9.6% vs. 11% – Midtown Avenues vs. Side Streets

Midtown office

The Midtown office market has performed well over the past 12 months, as its availability rate dropped 140 basis points to 9.9 percent. Class A asking rents are up 7.6 percent to $83.07 per square foot and Class B asking rents are up 6.1 percent to $60.42 per square foot. Since Midtown is the biggest of Manhattan’s major markets taking these statistics as-is only demonstrates the overall trend. Sometimes, delving into the statistics on an avenue-by-avenue basis or based on side streets can tell a lot more.

The availability rate for Midtown’s side street buildings is 140 basis points higher at 11 percent when compared to avenue buildings only, which has an availability rate of 9.6 percent. Overall asking rents are higher for avenue buildings, averaging $76.54 per square foot, an $11.70 difference when compared to side street buildings which average $64.84 per square foot.  Read More

Stat of the Week

Stat of the Week: 54.7 Percent

Midtown South Stat of the Week image

Throughout this real estate recovery cycle, Midtown South has led the charge for the Manhattan office market and currently has the lowest availability rate of the three major markets at 7.9 percent. Midtown South’s overall average asking rents are up 54.7 percent since they bottomed in January 2010, by far the greatest rent increase compared Read More

Stat of the Week

Stat of the Week: 53 Percent

Downtown Availability chart form

Downtown Manhattan has dominated headlines over the past year, as tenants continue to lease large blocks of space, causing the available supply to shrink. Year-over-year the number of 100,000-square-foot blocks dropped to 12 from 17. The total square footage from these 12 blocks consists of 3.7 million square feet, down from the 4.9 million square Read More

Stat of the Week

Stat of the Week: 5.8 Million Square Feet

Absorption Top 5 chart

Strong market fundamentals have led to three quarters of positive absorption this year in Manhattan, totaling 5.8 million square feet.

All three markets contributed to this positive total, as downtown led the way with 2.9 million square feet, which was fueled by 11 leases each signed for over 100,000 square feet. After recording negative 871,775 Read More

Stat of the Week

Stat of the Week: $65.50 Per Square Foot

Midtown South Available Supply

Through three quarters this year, healthy market fundamentals continue and asking rents remain on the rise across all markets in Manhattan real estate. Despite rental increases being slightly off the pace of 2013—overall Manhattan asking rents increased only 4.5 percent through September this year compared to 6.8 percent for the same time period last year—many Read More

Stat of the Week

You’ve Gotta Have Friends

Friends SotW_Final-01(1)

This week marks the 20th anniversary of another New York-based sitcom that entertained millions of people for 10 seasons—Friends. Throughout the years, the six main characters had some very quotable lines that made me think of the current New York real estate market. So it is my duty to write a Friends-based article, because it Read More

Stat of the Week

Stat of the Week: 9.4 Percent

Friends show lines and leases

This week marks the 20th anniversary of another New York-based sitcom that entertained millions of people for 10 seasons—Friends. Throughout the years, the six main characters had some very quotable lines that made me think of the current New York real estate market. So it is my duty to write a Friends-based article, because it is Read More

Stat of the Week

Midtown Drops the Basis Points


The Midtown availability rate dropped below 10 percent for the first time since June 2008, and is the lowest it has been in 75 months. Since the end of last year, the availability rate is down 110 basis points, and things really started to heat up during the summer, as it dropped a combined 70 Read More