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New York City Office, Retail, Industrial Market Overview |
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Manhattan Office Space Rentals
2005 ended like it started, with office vacancy rates dropping to new lows, reaching under 6% in Midtown and 10% in Downtown. The Midtown market remains extremely tight, as has been the case all year. With few new buildings nearing completion, and only one major building, the Bank of America, under construction, 2006 looks to continue the same trends of low vacancies and high rents well into the year.
Great deals abound Downtown. With higher vacancy rates than Midtown, and the Downtown incentives renewed, good space rents from $19-$30 per square foot. Great space can be rented for $30-$50 per square foot which is about half the price of comparable space in Midtown.
New York City Retail Leases
Retail vacancy rates have been going up over the past few months with more available space. This should extend into January with a marked upswing. Historically, many struggling retail businesses stay open through December hoping that Christmas sales will save them, resulting in January closures. The TWU subway/bus strike compounded this problem by preventing customers from reaching the stores, acting as the final knockout punch. Expect retail space to open up significantly in the beginning of the new year. |
New York City Buildings for Sale: |
- 370 Lexington Ave, a 300,000 sf office building, is expected to sell for about $300 million.
- 535, 545, and 509 Fifth Avenue are on the market and are expected to be sold for about $250 million.
- 521 Fifth Avenue, a 40-story tower, is for sale for $250 million.
- 303 East 83rd Street, a 261-unit building, is for sale for about $202 million.
- 597 Fifth Avenue, the former Scribner’s bookstore, and 3 East 48th Street are being sold for about $80 million.
- 17 John St, a 111-unit apartment building should sell for over $50 million.
- At 40 Gansevoort, the future site of Theory’s new flagship store, leasehold rights are for sale for around $30 million.
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New York City Retail Leases: |
- Total available New York City Retail Space rose from 0.41 to 0.45 million RSF.
- Midtown vacancy dropped from 0.12 to 0.10 million RSF.
- Midtown South Retail space vacancies also rose from 0.22 to 0.25 million RSF.
- In Downtown, vacancy increased from 0.08 to 0.10 million RSF.
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New York City Real Estate Developments: |
- The Empire State Development Corp. approved plans to build a $150 million waterfront park underneath the Brooklyn Bridge, the first major park in Brooklyn since Prospect Park was built in 1870. The dock is expected to host the Queen Mary 2.
- The New York Yankees and Mets have been approved to develop new $800 million and $444 million baseball stadiums.
- The Marriott Residence Inn at 39th Street and 6th Avenue plans to convert 96 units on the top 10 floors to condos for long term stays, running from $650,000 to $950,000.
- One of Times Square’s super-sign spaces is up for sale. At 3 Times Square, the Prudential Financial multicolor display, about 6,000 square feet over the 7th Avenue and 42nd street corner will come down soon.
- The two story Automat Building at 104 West 57th street will be destroyed to make way for a new office tower.
- A 35 Story, 250-unit building at 200 Little West Street in Battery Park city is under construction, slated for completion at the end of 2007.
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Manhattan Office Space Rentals: |
- Total New York City Office Class A vacancies decreased from 17.73 million RSF to 16.89 million RSF, and total market vacancy decreased from 30.21 million RSF to 27.98 million RSF.
- Total New York City Office Market vacancies decreased as both total direct lease vacancy decreased from 25.49 million RSF to 23.46 million RSF and total sublease vacancy decreased from 4.73 million RSF to 4.52 million RSF.
- Total New York City Office direct lease vacancy decreased from 25.49 million RSF to 23.46 million RSF, while total sublease vacancy decreased from 4.73 million RSF to 4.52 million RSF.
- Total New York City Office Market vacancies decreased as Midtown South Office vacancy dropped from 5.12 to 4.05 million RSF and Midtown Office vacancy dropped from 15.83 million to 14.90 million RSF. Meanwhile, Total New York City Downtown Office vacancy rates decreased from 9.27 million RSF to 9.04 million RSF.
- Total vacant Midtown New York City Office Space decreased led by a decrease in total direct lease space from 13.04 to 12.45 million RSF. Total vacant sublease space decreased from 2.79 to 2.45 million RSF.
- Midtown South Office direct lease vacancy decreased from 4.82 million RSF to 3.65 million RSF, while sublease vacancies rose from 0.30 to 0.40 million RSF.
- Total Downtown New York City Office vacancies decreased with direct lease space dropping from 7.63 million RSF to 7.36 million RSF, despite sublease vacancy increasing from 1.64 million RSF to 1.68 million RSF.
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New York City Industrial Leases : |
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New York City Buildings Sold : |
- 1290 Avenue of the Americas was sold to Donald Trump’s Chinese partners for $1.25 billion.
- 230 Park Avenue, the Helmsley Building, a 1.2 million sf office building, sold for $705 million.
- 75 Wall St, a 660,000 sf office building, sold for $175 million and will likely be converted in to condos with a hotel component.
- 100 Wall Street, a 462,000 sf office building, sold for $134 million.
- 102 West 40th Street, a 200,000 sf tower, sold for $120 million and is planning to be converted to residential.
- 15 William Street, an empty lot, sold for $90 million.
- 681 Fifth Avenue, the Fortunoff Building, sold for $86 million.
- 1075 Fifth Ave, between 110th and 111th Streets, sold for $75 million.
- 85 East End Avenue, a residential building, sold for $70 million.
- 57 West 75th Street, a 82-unit apartment building, sold for $70 million.
- 25 West 39th Street, a 208,000 sf building, sold for $53.5 million.
- 1552 Broadway, the former T.G.I.F. building, sold for $48 million.
- 240-246 West 35th Street, a 161,000 sf office building, sold for $32 million.
- 366 Tenth Avenue, a development site, sold for $23 million.
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Noteworthy New York City Leases: |
- Citigroup has leased 296,756 sf at 485 Lexington Avenue.
- Ropes & Gray has leased 250,000 sf at 1211 Sixth Avenue.
- American Express has leased 200,000 sf at 3 World Financial Center.
- Advance Publications subleased 120,000 sf at 1166 Sixth Avenue.
- Jennison Associates leased 118,000 sf at 237 Park Avenue.
- The National Sports Museum leased 100,000 sf at 26 Broadway.
- TIAA-CREF leased 84,481 sf at 750 Third Avenue.
- Medical Research Association, a not for profit, has leased 69,000 sf at 40 Worth Street.
- L-3 Communications has renewed its leased for 65,345 sf at 600 Third Avenue.
- Huron Consulting Services leased 56,600 sf at 1120 Sixth Avenue.
- Quinn Emanuel Urquhart Oliver & Hedges leased 48,892 sf at 51 Madison Avenue.
- GE Commercial Finance has leased 48,000 sf 280 Park Avenue.
- Wolf, Block, Schorr & Solis-Cohen law firm has leased at 44,370 sf at 250 Park Avenue.
- ITOCHU International leased 40,426 sf at 1411 Broadway.
- New York Academy of Sciences signed a 40,000 sf leases at 7 World Trade Center.
- Fordham University has leased 33,532 sf at 888 Seventh Avenue.
- Scientific American has leased at 31,000 sf at 415 Madison Avenue.
- Regatta USA leased 29,554 sf at 1450 Broadway.
- Dave & Buster's, a sports bar and restaurant is leasing 30,000 sf at 234 West 42nd Street.
- WH Freeman and Worth Publishers leased 28,000 sf at 41 Madison Avenue.
- Borders Books signed a 22,500 sf lease at Atlas Park in Glendale, Queens.
- El-Ad Group signed a 10 year sublease for 20,547 sf at 575 Fifth Avenue.
- National Gay & Lesbian Task Force leased 8,523 sf at 80 Maiden Lane.
- Chase leased 7,500 sf at the General Motors building at 767 Fifth Avenue.
- Searle, a clothing boutique, leased 5,000 sf at 1142-44 Third Ave.
- Verizon Wireless leased 4,750 sf at 581 Broadway.
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Manhattan Office or Retail Space Search
Detailed Statistics and Graphs