Stat of the Week: 30.3 Percent Increase
In honor of this week’s Power 100 issue, it is time for the fourth installment of the Power Five list. This year we are going to change up the list and focus on the top five facts learned during the first quarter of 2016 instead of submarkets ranked by leasing activity. In order to ensure the facts are interesting, there will be no statements about vacancies or asking rents on the list. So, below are the Power Five facts of the first quarter.
5. 24.6 Percent – The increase in Midtown South’s leasing activity compared to this time one year ago, led by two Facebook leases at 225 Park Avenue South and 770 Broadway, totaling 240,000 square feet. This also allowed for Midtown South to be the only market with positive absorption during the first quarter.
4. 10 – The amount of large blocks of space greater than 100,000 square feet added to the Manhattan market in the first quarter. This is a vast improvement from the 21 placed on the market one year ago.
3. 37 Percent – The market share for Technology, Advertising, Media and Information Services, or TAMI, leasing in Manhattan throughout the first quarter. TAMI continues to dominate Manhattan—Midtown South had 72 percent and Downtown had 62.1 percent of the TAMI leases signed that were greater than 10,000 square feet.
2. $38.12 PSF – The difference between Plaza District taking rents for tower floors ($123.96 per square foot above the 20th floor) and base floors ($85.84 below the 20th floor) over the last five quarters. This analysis excludes the Citadel lease, which if included, would bump the spread up to $46.05 per square foot.
1. 30.3 Percent – The increase in Downtown net effective rents over the past three years to $41.98 per square foot in the first quarter. Despite Downtown landlords still offering generous concessions, the net effective rent increase is substantially higher than Midtown at 10.7 percent and Midtown South at 9.8 percent.