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March 2004: New York City Retail, Office and Industrial Market Report |
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New York Market Overview:
Class A Office market continues to tighten and rents start to rise as the economy recovers. Retail vacancies increase across all segments and Industrial vacancies decline.
The sales market remains hot as multiple purchasers bid on the few buildings that are available on the market.
MARKET HIGHLIGHTS
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New York Office Leases: |
- Total Class A vacancies decreased from 22.77 million RSF to 21.93 million RSF, while Total Market vacancies decreased slightly from 40.54 million RSF to 39.92 million RSF.
- Total Direct Lease availability increased from 31.29 million RSF to 31.46 million RSF, while Total Sublease vacancies continued their two year declined falling to a new low of 8.46 million RSF from 9.25 million RSF.
- Midtown availability decreased from 22.39 million RSF to 22.05 million RSF, while Midtown South availability increased from 7.74 million to 7.77 million RSF. Total Downtown Vacancy rates dropped from 10.42 million RSF to 10.10 million RSF.
- Total Vacant space in Midtown increased as Total Direct Lease space availability increased from 16.55 million RSF to 16.75 million RSF outweighing the decline in Total Sublease availability from 5.84 million RSF to 5.30 million RSF.
- Midtown South Direct Lease availability rose to 6.30 million RSF from 6.12 million RSF, while Sublease vacancies decreased from 1.62 million RSF to 1.47 million RSF. Total Downtown vacancies fell as the decrease in Direct Lease space from 8.62 million RSF to 8.40 million RSF, adding to the fall in Sublease availability from 1.80 million RSF to 1.70 million RSF.
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Manhattan Retail Leases: |
- Total Retail availability rose from 0.46 million RSF and 0.54 million RSF as all three market segments saw increased vacancy rates.
- Midtown availability increased from 0.18 million RSF to 0.27 million RSF.
- Midtown South remains the same at 0.24 million RSF. Total Downtown Vacancy rates decreased from 0.04 million RSF to 0.03 million RSF.
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Manhattan Industrial Leases: |
- Total Industrial Vacant space increased from 1.03 million RSF to 1.04 million RSF due to a incline in Total vacancies in Midtown South from 0.37 million RSF to 0.39 million RSF.
- Total Industrial Vacant space decreased from 1.03 million RSF to 0.94 million RSF due to a decrease in Total vacancies in Midtown from 0.66 million RSF to 0.50 million RSF.
- Total vacancies in Midtown South increased from 0.37 million RSF to 0.44 million RSF.Vacancies rates in Downtown remained relatively unchanged.
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Manhattan Office Leases: |
- Jones Apparel Group 82,702 square-feet at 498 Seventh Ave. a sublease from Mass Mutual’s Oppenheimer Funds that had inked a ten-year lease for 120,000 square feet there on 9/11 but returned Downtown to 2 World Financial Center last fall.
- Claremont Preparatory School will move to the entire 100,000 sf 41 Broad Street. MetSchools, a for-profit education group, will operate the new school. Claremont Preparatory will be the organization’s first Downtown venture that will seat approximately 1,000 students in grades K-8. The building is undergoing a $25 million renovation project.
- The Manatt, Phelps & Phillips lease is for 85,468 square feet. Manatt, at 5 Times Square. Pitney, Hardin, Kipp & Szuch LLP has leased 46,339 square feet at 5 Times Square.
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Building Sales: |
- 609 Greenwich Street sold for $23 million. Located nine-story plus basement office building containing approximately 150,140 rentable square feet.
- 261 Fifth Avenue The $114 million sale of the 426,000 sf Koll Bren Schreiber Realty. The buyers are David Levinson and Robert Lapidus of L & L Acquisitions in a joint venture with Carlyle Realty. 600 Lexington Ave a 36-story, 278,586 square foot tower sold to a fund owned by Hines and Sumitomo Life Realty (NY) for less than $100 million.
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Harlem New Construction: |
- Marriott Courtyard hotel 208-room, catering spaces, jazz club and 250,000 sq. ft. of office space. a 29-story, mostly glass tower in Harlem.
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March 2004 Graphs and Statistics
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Detailed Statistics and Graphs