NY Real Estate News Archive for 2010

July 2010
Leasing volume spikes, as firms lock in low rents. Office vacancy increases, as most firms are taking smaller spaces. Landlords are encouraged by the strong uptick in leasing volumes and are starting to think about raising prices or lowering concessions.

June 2010
I just returned from the International Council of Shopping Centers Convention in Las Vegas. The big surprise is how dramatically improved the attitude is compared to a year ago when all was lost. Attendance was up over previous years. People were looking to buy distressed debt, only to find out it is still not readily available.

May 2010
The best lease deals are being done now.
Manhattan Office and Retail rents are at the bottom.
Landlords are still offering generous concession packages to close leases, especially for larger users. This will not last.

April 2010
This month has been a big yawn, in that while leasing volumes have increased it is due primarily to lease renewals that are shrinking and as such prices continue to moderate.

March 2010
Landlords are being very aggressive to retain stable existing tenants, once the tenants have shown they are serious about moving. Tenants have also realized the need for a Tenant broker in these negotiations.

February 2010
Industry executives believe that we are at or near the bottom. The market 12 months ago felt like there was no bottom. Large building sales are starting to get done as sellers acknowledge the new market price. Loans are getting done although at substantially lower debt levels and at more stringent terms. There is still an overhang of zombie residential and commercial buildings where ownership does not have the money to fund build-outs and/or the properties owners have yet to cede ownership to the banks.

January 2010
Long-term leases are now being signed by major corporations, as rents are being discounted 30% to 50% off the all time highs.

This is not true for smaller tenants, as downsizing has increased demand and there is less small office space in the market due to building conversions and former building repositioning for larger tenants.

New York Real Estate News Archive for 2009

December 2009
Over the past 30 days, retail vacancies have increased 18.67 % and office vacancies have increased 1.36%, this should trigger rents to continue to fall and landlord concessions to increase.

November 2009
Manhattan leasing activity picks up for both Retail and Office.
Additional 500,000 RSF of office vacancies came on the market last month, but Tenants are snapping up office and retail spaces as rents are near a bottom and business prospects are more stable.

October 2009
There is some stability in the office market, but it will likely be temporary. The Class A office vacancy rate fell 0.2 points in August to 11.8 percent, while average asking rents rose 19 cents to $64.36 per square foot.

September 2009
Activity has picked up in small and medium sized office and retail leases. Major corporations (Tenants) are still taking a wait and see attitude over the next few months until a clearer picture emerges on the economy before entering into long term leases.

August 2009
The lowest rents in 13 years have caused office and retail tenants to enter back into the market and execute leases.

July 2009
Manhattan commercial vacancy rate hits 13-year high.
While commercial leasing activity has picked up in the past few months, the city's Class A vacancy rate increased and average rents fell last month. The vacancy rate of Class A space in Manhattan reached 11.9 % in May, up from 11.3 % in April.

June 2009
The New York City Office and Retail rental markets remains quiet though bargains abound. Great office space on Park Avenue that last year was $125-175 a square foot can now be rented for $60/SF asking. Same is true in retail where rental rates in many markets are 40-60% less than a year ago.

May 2009
Leasing activity grinds to a near halt. The Midtown Class A vacancy rate is 12.2 percent since April of this year, the highest rate since August 1996. There is 7.8 million square feet of sublease space available in Class A buildings, the most since they started keeping records in 1991.

April 2009
Office and retail leasing activities have dropped to new lows. Managing agents and landlords are now devoting a large percentage of their time working with existing tenants who are looking to downsize or renegotiate their rents. Last quarter, there was nearly 4 million square feet of negative absorption. Pending moves by Merrill Lynch and AIG, millions of additional feet of office space will be dumped back on the market.

March 2009
Office rents are off 30% from their all time highs and will continue to fall as Securities firms and banks may give up to 8 million square feet of office space in Manhattan this year.

February 2009
At a recent real estate conference, Vornado said that retail and high end office rents are having a negotiable factor of between 25 and 50% of asking prices.

In addition, SL Green said that office rents are projected to be down 25%. What this means to office and retail tenants is that there are deals/bargains to be had from motivated Landlords, provided that you are guided by an expert to help you get all these concessions.

January 2009
Building Sales grinded to a virtual halt with only two sales over $50 million.
Office leasing was light as major corporations are taking a wait and see attitude as rents are expected to continue to fall. High end office rents should also deteriorate as fewer and fewer $100/RSF rents are achieved and more hedge fund space comes back on the market.

Manhattan Real Estate News Archive for 2008

New York City Real Estate News Archive for 2007

Manhattan Real Estate News Archive for 2006