Downtown Led the Pack in 3Q with Positive Absorption: Cushman & Wakefield
Al Barbarino Dec. 2, 2013, 11:47 a.m.
More good news out of Downtown, with the latest Cushman & Wakefield research showing that it was the only submarket to register positive net absorption in the third quarter.
Downtown saw 523,000 square feet of positive net absorption, while the average asking rents increased 14.8 percent, to $45.66 per square foot.
The firm attributes the gains to the ever-presence of non-financial tenants relocating from Midtown and Midtown South, increasing the quality of their spaces, as the residential population grows to more than 63,000 with expanding retail, hospitality, parks, and transportation.
“Downtown is its own success story,” said Tara Stacom, a C&W’s executive vice chairman, in a prepared statement, calling the leaps in absorption “remarkable.”
“Lower Manhattan has re-invented itself as a 24/7 hub where creative and innovative companies can flourish, with … upscale eateries, soon 1 million square feet of retail shopping and vibrant nightlife. For perhaps the first time in its history, Downtown is… seen as a tenant’s most desired option.”
Information/Media made up 20.5 percent of the leasing in the quarter; followed by Government, Education, and Social Services, with 20.1 percent; Real Estate, at 9.8 percent; and Financial Services, at 9.1 percent.
More than 30 firms from a variety of sectors have relocated from Midtown and Midtown South since the beginning of 2013, with standout leases from Nyack College at 17 Battery Place North; Droga5 at 120 Wall Street; American Arbitration Society at 120 Broadway; Pacific College of Oriental Medicine at 110 William Street; and the NYS Society of Public Accountants at 12 Wall Street.