Optimal Spaces Announces Lowest Commercial Vacancy Rate in 13 Years

Market Research Reveals Real Bargains As City Cuts Prices On Office, Retail and Industrial Space.

New York, NY, June 13, 2009 – Vacant Manhattan office space peaked at 13.4% in April, up from 12.9 % a month earlier. The last time the availability rate was this high was in 1996. The activity in office and retail rental markets remains quiet, despite owners continuing to offer sharp discounts to fill spaces. Some New York City submarkets have more than 19% of Class A building space available.

"Last year, a great office on Park Avenue cost $125-175 a square foot. It can now be rented for $60 per square foot," said Stephen Sunderland, Managing Director at Optimal Spaces, a New York tenant representative brokerage firm. "The same is true in retail where rental rates in many markets are 40-60% less than a year ago."

For retail space in Manhattan, the average asking rent fell 11% between fall 2008 and spring 2009. Many landlords are renting stores to either Pop Up Stores (temporary tenants) or using vacant window fronts as billboards for nationally known companies such as Absolute, Intel, Nestea and Snickers. These advertisers are paying only 10 to 15% of what a retailer would for the same space. We encourage our clients to make reasonable offers based on what is worth to them and not get sticker shock at Landlords asking rents. Nationwide, the retail vacancy rate rose to 11.2% during the first quarter of the year. This is the highest it has been since the early 1990s.

For the latest market research on New York City commercial real estate, contact Stephen Sunderland. Optimal Spaces releases a monthly analysis of the market, including detailed statistics and graphs.