Stat of the Week

Stat of the Week: 26 to 21

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As the weather gets colder and the footballs get deflated, we know it’s once again time for the second biggest eating day of the year, Super Bowl Sunday. And what better way to prepare for the big game then by hosting the second annual Super Bowl Stat of the Week. Just as the Seattle Seahawks are trying to repeat as NFL champions, so is Class B office space trying to repeat as Stat of the Week Super Bowl Champion. So let’s see whether Class A or B had higher asking rental increases and larger decreases in the available supply in 2014.

The first half of our comparison equation is based on average asking rental increases for 2014. Manhattan Class A asking rents jumped out to an early lead with a 7.1 percent increase last year to $77.25 per square foot—a six-year high. But Class B asking rents came ready to play, posting a 7.4 percent year-over-year increase to $59.24 per square foot, ending the first half winning again by the slimmest of margins. Read More

Stat of the Week

Stat of the Week: 48.5 Percent

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Unlike Meghan Trainor, the Plaza District isn’t all about the base—it’s about the tower. In 2014, the Plaza District picked up the pace as availability dropped 110 basis points in 12 months, down to 11.1 percent. The majority of demand for space in the area was for tower floors (20th floor and above), as 63.3 percent of the square footage leased last year was in the upper portions of buildings. This is a major change from 2013, when only 18.5 percent of the space leased within the Plaza District was on tower floors. Read More

Stat of the Week

520-Basis-Point Drop

2014 availability challenge

Ah January… single-digit temperatures, New Year’s resolutions and the annual REBNY gala. This year marks the 119th New York real estate event, and in honor of the gala and this year’s six honorees, it’s time to hand out awards. The Stat of the Week awards will go to the submarkets that kept their 2014 resolutions and shed the most basis points off availability. In a year where the Manhattan office availability rate dropped 160 basis points to 9.3 percent, 14 of the 17 submarkets tracked by DTZ had declines in the available supply. Out of these 14 submarkets, five had drops in availability of 300 basis points or more in 2014. They also averaged a combined $4.68 per square foot increase in overall average asking rents—49.6 percent higher than the other 12 submarkets combined. So let’s take a look at the “biggest losers” of 2014. Read More

Stat of the Week

Stat of the Week: 32.3 Percent

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What better way to ring in the New Year than by seeing how busy the TAMI (technology, advertising, media and information services) sector was in 2014? TAMI tenants leased more than 11.5 million square feet last year, and accounted for almost 32.3 percent of the total leasing activity throughout Manhattan. TAMI went big last year, with an average deal size of 29,999 square feet—35 percent larger than the market average of 22,282 square feet. In addition, 22 out of the 49 signed leases signed greater than 100,000 square feet in 2014 were from the TAMI sector. 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

A Tale of Two Avenue of Americas

SixthAvenueDivision

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

Stat of the Week

Manhattan Office Investment Market Up 42.6% Since Early 2012

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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.

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Stat of the Week

What New York Jets Quarterback Geno Smith Has In Common With Midtown Rents

Inconsistency

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?

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Stat of the Week

More Than 35 Percent of Midtown South Buildings Fully Leased

Blocks_Final STOW

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.

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