The 118th Real Estate Board of New York banquet is upon us–the biggest annual event in New York real estate. In honor of celebrating this event, let’s take a look at the submarkets that had the biggest declines in availability since last year’s gala. In 2013, five submarkets stood out as the availability rate dropped 200 basis points or more compared to 2012. Not surprisingly, the combined average increase in the overall asking rents for these five submarkets was $9.10 per square foot—81 percent higher than the average rental increase of the 12 other submarkets. Out of the top five submarkets, four are on the west side of Manhattan.
Let’s take a look and see which ones they were.
#5 Midtown West/Columbus Circle: Availability dropped 200 basis points to 7.1 percent, while overall asking rents skyrocketed $14.03 per square foot to $76.03.
#4 Fashion District: An availability rate of 8.0 percent is 240 basis points lower than where it was in 2012. Overall asking rents rose $8.09 per square foot to $50.65.
#3 Times Square: It’s no coincidence that the submarket with the lowest availability rate (5.9 percent) is on this list, as availability declined 260 basis points in 2013. The increase in overall asking rents was the lowest of the top five submarkets, with a modest $4.00 jump to $77.22 per square foot.
#2 SoHo/NoHo/Village: Even the addition of a 400,000-square-foot new office building—51 Astor Place—could not stop this submarket from having the second highest depreciation in availability, as the rate dipped 280 basis points to 8.0 percent. Overall average asking rents saw the highest appreciation in 2013, increasing $14.38 per square foot to $80.74 thanks to the new construction at 51 Astor.
#1 Hudson Square/TriBeCa – This submarket had the largest decrease in availability in 2013, dropping 340 basis points to 7.3 percent. The overall average asking rent soared a respectable $4.99 per square foot to $62.50, the highest average in recorded history.
So when you are at the REBNY gala this week, toasting the six 2014 real estate honorees, also give a cheers to the five submarkets that flourished in 2013.—