Stat of the Week

Nearly Half of 1Q13 Transactions Were Renewals


Leasing activity in the first quarter of 2013 totaled 7.15 million square feet, a 30 percent increase from each of the last two quarters of 2012. However, peeling back the layers reveals that 46 percent of these lease transactions were renewals. Yes you read that correctly—almost half of the square footage leased in the first quarter was renewals. Seven out of the top 10 transactions were large tenants opting to remain in place; this is a big contributor to the trend. Read More

Stat of the Week

Chelsea and Meatpacking District Availability Rate Lowest in NYC


The Midtown South availability rate was stagnant in the first quarter of 2013 at 9 percent, but it still remains the lowest of the three Manhattan markets.

Of the five submarkets in Midtown South, three have experienced declines in availability this year. Meanwhile both the Flatiron/Union Square and Hudson Square/Tribeca submarkets had four large blocks of space 50,000 square feet or greater added to the market, which pushed availability higher in these areas. Read More

Stat of the Week

Midtown Average Asking Rents Experience Largest Dip Since 2010


In March, Manhattan Class A direct average asking rents dropped $0.19 per square foot. It’s only a mere $0.19, but the bulk of the decline came due to an $0.85-per-square-foot drop in Midtown Class A average asking rents.

The decrease was the largest since 2010 for Midtown Class A space, and represented the second consecutive month of declines. The $0.98-per-square-foot decline over the past two months is indicative of the shift in demand for space throughout Manhattan. At 22,036,093 square feet, available Class A Midtown space surpassed 22 million square feet for the first time since—you guessed it—2010. Read More

Stat of the Week

Number of Contiguous Blocks of 100,000 Square Feet Rises


There are currently 89* contiguous blocks of 100,000 square feet and greater on the market.

As with most things in the world today, there is a caveat—and this is where that asterisk comes into play. This total number of 89 includes eight available blocks of space in buildings that are under construction. Compare that with 2010, when 78* such spaces existed (including five blocks under construction), and it is clear that today large blocks continue to be an impediment on market recovery. Read More

Stat of the Week

For First Time in Recent History, Class B Availability Lower Than Class A


A flight to value is occurring in the Manhattan office market as Class B office product remains in high demand.

At 10.6 percent, the current availability rate for Class B space is 170 basis points less than the Class A rate of 12.3 percent. This is the only real estate cycle in recent history in which Class B availability rates have been lower than those for Class A. This trend started in 2012 and has continued for the last 10 months. Read More

Stat of the Week

Tenants Not Occupying Same Amount of Space As They Used To


New York City office employment closed 2012 with 1,260,700 jobs, an addition of 108,500 jobs since employment bottomed out at the end of 2009.

Job growth in office-sector industries (financial services, professional services, information services and real estate) is a prime driver for office space leasing. Availability rates remain high, however, because tenants are not occupying the same amount of space that they used to. Read More

Stat of the Week

Deals Under 20,000 SF Ruled in 2012


Mega deals rule the commercial real estate market and the trade papers, as everyone in the industry wants to know where the latest big block of space was leased and who will take down the next one.

The market saw its share of deals that were 100,000 square feet and more in 2012, just slightly off of 2011’s pace—53 versus 56, respectively. It is always great to read about the UBS-type 890,000-square-foot renewals and expansions and the Microsoft-like 204,000-square-foot deals, but based on the number of transactions, these household names account for merely 3 percent of the leasing activity in any given year. Read More

Stat of the Week

2012 Shaping Up To Be Worst Year For Absorption Since 2009

Manhattan Net Absorption.

Net absorption (net change in occupied space) wrapped up the first 10 months of 2012 at a little more than 1.6 million square feet.

It could be worse … but it could also be better.

This year, firms haven’t been expanding in or relocating to Manhattan at the same speed they did even in 2010 and 2011. And unless some growth explosion happens over November and December, this will be the worst year for absorption since the sharply negative 2009. Read More

Stat of the Week

Midtown Poised to Make Comeback

Midtown by the Numbers.

Will the Midtown light shine brighter (it has been rather dim lately) since it escaped much of the wrath of post-tropical storm Sandy?

The jury, of course, is still out, but let’s review the facts: flooding and power outage issues continue in the southern third of Manhattan, but I most definitely think this part of the borough will come back. Read More

Stat of the Week

Vacancy Rate Not So Shabby in 3Q12


Given all the trauma going on globally, nationally and even locally, the third-quarter New York City metro-wide vacancy rate ended up not so bad.

The total figure (for all classes) closed September at 12.2 percent, down 20 basis points. That figure is based on a whopping 733.1 million square feet of inventory (with just over 89.3 million square feet of availability) across the Cassidy Turley local tracking area. Read More

Stat of the Week

Midtown Class A Rent Makes Leap


The Midtown Class A average asking rent, defying a rather weak leasing market, jumped 2.4 percent in the third quarter to close at $76.75 per square foot and is now at its highest since attaining $80.70 per square foot in January 2009.

It has risen in each of the three quarters thus far in 2012 and is up 8.3 percent year-to-date. Furthermore, each of the five Midtown submarkets has seen a rise this year (some quite substantially). Read More