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New York City Office, Retail, Industrial Market Overview |
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Midtown Manhattan rents are near an all time high. In the first six months of 2006, there have been more leases signed over $100 than all of last year. Asking rents at 767 Fifth Avenue, the GM building, and 9 West 57th Street are $175 per RSF for the top floor office towers.
Midtown Manhattan Office Space
Midtown Office Rents will continue to rise, as few new commercial buildings are being built and only a few buildings are in the pipeline.
Downtown Manhattan Office Space
The pending lease for Moody's at 7 World Trade Center have used up all the available rent subsidies, offered by the State and matched by Silverstein. Effective rents have risen dramatically from low 40's/RSF to mid 50's/RSF.
Rents Downtown rise. Two to three months ago, rents in Class B downtown office buildings were low to mid 20's now they are high 20's to low 30's. World Trade Center.
Larry Silverstein and The Port Authority of NY/NJ filed a lawsuit to compel the insurance companies to pay more than $3.5 billion due under the insurance policies for the World Trade Center.
The insurance proceeds are needed for the development of the Freedom Tower and three additional buildings along Church Street.S Customs, a former tenant of 6 world trade center, is renting 600,000 square feet in the Freedom Tower. |
New York City Retail Leases: |
- Total available Manhattan Retail Space rose from 0.63 to 0.68 million RSF.
- Midtown South Retail space vacancies rose from 0.35 to 0.40 million RSF while in Midtown vacancy fell from 0.16 to 0.14 million RSF.
- In Downtown, vacancy increased from 0.13 to 0.15 million RSF.
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New York City Real Estate Developments: |
- Building permits for 31,599 units of Residential construction were issued in 2005, a 25% increase over 2004.
- The last two residential sites in Battery Park City will be developed by Milstein Properties who will build two environmentally friendly condo towers.
- The former Shelly's restaurant and adjacent office building, on 57th Street between 6th and 7th Avenues (112,965 buildable SF), was bought by Hilton Resorts for $63 million or $504/buildable square foot.
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Manhattan Office Space Rentals : |
- Total Manhattan Office Class A vacancies decreased from 17.43 million RSF to 16.65 million RSF, while total market vacancy decreased from 28.56 million RSF to 27.41 million RSF.
- Total Manhattan Office direct lease vacancy decreased from 24.12 million RSF to 23.25 million RSF, while total sublease vacancy decreased from 4.44 to 4.17 million RSF.
- Total Manhattan Office Market vacancies decreased as Midtown South Office vacancy fell from 4.43 to 4.30 million RSF.
- Midtown Office vacancy dropped from 13.93 million to 13.30 million RSF and total Manhattan Downtown Office vacancy rates decreased from 10.20 million RSF to 9.81 million RSF.
- Total vacant Office Space in Midtown Manhattan decreased led by a decline in total direct lease space from 11.85 to 11.22 million RSF.
- Total vacant sublease space remained at 2.08 million RSF.
- Midtown South Office direct lease vacancy increased from 3.73 million RSF to 3.79 million RSF, while sublease vacancies fell from 0.71 to 0.51 million RSF.
- Total Downtown Manhattan Office vacancies decreased with direct lease space decreasing from 8.55 million RSF to 8.23 million RSF and sublease vacancy decreasing from 1.65 to 1.58 million RSF.
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New York City Industrial Leases : |
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New York City Buildings Sold : |
- 1211 Avenue of the Americas was sold for $1.5 Billion or $789/RSF to Beacon Capital and Lehman Brothers.
- The building is a Class A office building comprising of 1,900,000 square feet.
- 234 West 42nd Street, The Hilton Times Square, a 444-room hotel, was sold to Sunstone Hotel Investors Inc. for $242.5 million.
- 521 Fifth Avenue, a 40-story, 460,000 sf office building, was sold to SL Green Realty Corp. for $225 million.
- 245 East 40th Street, The Marlborough House, a 270-unit rental, was sold to Archstone for $165 million.
- 150 East 52nd Street, a 35-story class A office building, was sold to Princeton International Properties Corp. for $120 million.
- 443 Greenwich Street, an office property, was sold to Shahab Karmely for $110 million.
- 180 Montague Street in Brooklyn Heights, a 186-unit rental apartment building, was sold to Archstone Smith for $101 million.
- Partial stakes in 1333 Broadway, 1350 Broadway, 1400 Broadway, 112 West 34th Street and one other property, was sold to Leona Helmsley for $100 million.
- 30 Broad Street, a 431,502 sq. ft. office tower, was sold to Gotham Broad LLC for $99 million.
- 11 West 19th Street, a 281,000 sq ft office building, was sold to Kaufman Organization for $87 million.
- 286 Madison Avenue and 290 Madison Avenue, two office buildings, was sold to SL Green for $63 million.
- 308 East 38th Street, a 97-unit apartment building, was sold to UBS Realty Investors, for $59.15 million.
- 29 West 57th Street, a 60,000 sq. ft. office property, was sold to Vornado Realty for $42 million.
- 234 West 48th Street, a Best Western President Hotel with 334 rooms, was sold to a Partnership led by Jeffrey Goldberger for $33 million.
- 25-27 West 34th Street and 29 West 34th Street, two retail properties, was sold to SL Green; Jeff Sutton, for $30 million.
- 779 Riverside Drive, a 92-unit apartment building, sold to a Manhattan investor, for $19.3 million.
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Noteworthy Manhattan Leases: |
- Morgan Stanley is going to net-lease all the office space at 522 Fifth Avenue.
- Digitas leased 240,000 SF at 345 Park Avenue South.
- VF Sportswear leased 168,000 SF at 40 West 57th Street.
- The Rebecca School leased 61,000 SF at 40 East 30th Street.
- City College of New York leased 45,000 SF at 25 Broadway.
- Protiviti leased 33,000 SF at 1290 Sixth Avenue.
- Bevmax Office Centers leased 28,000 SF at 75 Rockefeller Plaza.
- Synergos Institute leased 23,350 SF at 51 Madison Avenue.
- New York University leased 22,694 SF at 673 First Avenue.
- Tommy Bahama leased 20,987 SF at 1071 Sixth Avenue.
- Jubilee Market leased 20,000 SF at 180 Riverside Boulevard.
- KDDI America leased 19,244 at 825 Third Avenue.
- Ann Taylor Loft leased 19,000 SF at 7 Times Square.
- TSYS Prepaid leased 18,548 SF at 535 Fifth Avenue.
- New York Eye and Ear infirmary leased 18,000 SF at 380 Second Avenue.
- Salesforce.com leased 15,750 SF at 140 East 45th Street.
- IMT Accessories Inc. leased 14,930 SF at 10 West 33rd Street, the Fashion Accessories Center.
- Highbridge Capital Management leased 12,500 at 1350 Sixth Avenue.
- Schoenfeld Asset Management leased 12,500 SF at 1350 Sixth Avenue.
- Highland Financial Holdings Group leased 12,167 SF at 51 Madison Avenue.
- Cardiovascular Research Association leased 12,150 SF at 111 East 59th Street.
- ELRAC leased 11,908 SF at 45 Main Street in Brooklyn.
- Discover Media leased 11,560 SF at 90 Fifth Avenue.
- Mystic Apparel leased 11,200 SF at 500 Seventh Avenue.
- USA Data Inc. leased 10,817 at 292 Madison Avenue.
- Principal Life Insurance Company leased 10,450 at 1155 Sixth Avenue.
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