April 2002: Manhattan Office Space Update
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Market activity was up dramatically last month, after being subdued for three to four months. Total available space was reduced by six million square feet, for a decrease of 10%. Most interestingly, one million more square feet of Class A office space (new office buildings) was put on the market. By contrast, Class B and C office space (older office buildings and loft buildings) has been rapidly absorbed since it has fallen in price so dramatically. It seemed as if firms who had been sitting on the sidelines returned to the market and locked in long term leases at rents up to 50% lower than where they were a year ago. Additionally, a number of firms that relocated out of the city after September 11th have returned to Manhattan.
Quality offices in Wall Street range from $20-30 per Rentable Square Feet (RSF) with a new building installation. Soho / Tribeca / Flatiron landlords will make direct leases for $20-24/ RSF with a $20/RSF landlord work contribution. Direct leases in Midtown in Class A offices buildings rent for $35-55/RSF.
Landlords are very aggressive in making deals with desirable companies.
Incentives are now available from State and City Government for businesses to relocate or renew leases in downtown Manhattan.
Click here for applications. incentives.htm
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| MANHATTAN CLASS A OFFICE VACANT SPACE (In Millions of Rentable Square Feet)) |
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Direct |
Sublease, |
Total |
| Manhattan Office A |
12,883,134 |
8,961,076 |
21,844,210 |
| Total Market |
29,440,110 |
14,434,961 |
43,875,071 |
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MANHATTAN CLASS A OFFICE VACANT SPACE NOW AND IN THE NEXT TWO YEARS
(In Millions of Rentable Square Feet) |
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Direct |
Sublease, |
Total |
| Manhattan Office A |
27,131,964 |
12,883,134 |
39,225,431 |
| Total Office A |
46,584,147 |
19,284,738 |
65,868,885 |
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