February
2003: Manhattan Office Space
Update
In
the past 30 days, Manhattan
vacant office space increased
by 1.93 million Rentable Square
Feet (RSF). Out of this 1.93
million RSF, 1.18 million of
it is Class A office space.
Major amounts of “Shadow
Space” loom (Shadow space
is space vacated by major corporations
who have not yet listed the
space for rent as doing so would
require them under the tax laws
to recognize the loss in the
current year). Estimates of
Shadow Space are 5,000,000 feet
with more space pending unless
the economy picks up soon.
The
downtown market is active with
many firms looking to take advantage
of the downtown incentives/benefits.
The following link shows the
net effective cost of renting
space there. http://listings.downtownny.com/cust/dwalli/calculator/incentivescalc.asp
Midtown
landlords are the most aggressive
they have been in 10 years.
Landlords are offering to build
to suit, free architects to
do space planning and layouts,
and temporary space if needed
in conjunction with a long-term
lease. Couple these with incredibly
favorable rents and lease terms,
and it is obvious landlord’s
are doing whatever it takes
to make deals happen.
Harlem
is hot. Many not-for-profits
are seeking space in East, Central
and West Harlem and Washington
Heights. Given the limited supply,
expect rental prices to be as
high as other markets in Manhattan.
Please
feel free to contact us for
more detailed pricing information.
|
MARKET
TREND OBSERVATIONS |
OFFICE: |
| +
Total Market Vacancies fell
from 47.43 million RSF to
47.05 million RSF, while
Class A Vacancies fell from
26.14 million RSF to 25.69
million RSF. |
| +
Total Market Vacancies fell
as the decline in Total
Direct Lease space from
33.29 million RSF to 32.79
million RSF outweighed the
rise in Total Sublease vacancies
from 14.14 million RSF to
14.26 million RSF. |
| +
Total Direct Lease space
availability fell from 33.29
million RSF to 32.79 million
RSF, while Total Sublease
vacancies rose from 14.14
million RSF to 14.26 million
RSF. |
| +
The fall in Total Market
vacancies was a result of
a decline in vacant space
Downtown, where availability
fell from 12.82 million
RSF to 12.14 million RSF.
Midtown and Midtown South
both saw increased availabilities
as vacant space increased
from 24.4 million RSF to
24.59 million RSF and 10.21
million RSF to 10.33 million
RSF respectively. |
| +
Total Vacant Space in Midtown
continued to rise as Total
Direct Lease space increased
from 16.4 million RSF to
16.53 million RSF and Total
Sublease vacancies increased
to a new high of 8.06 million
RSF. |
| +
The increase in Total Vacant
Space in Midtown South was
due to a rise in Direct
Lease Space from 7.11 million
RSF to 7.32 million RSF.
During the same period Total
Sublease Vacant Space actually
fell to a new low of 3.01
million RSF. |
| +
While Total Direct Lease
vacancies declined from9.78
million RSF to 8.94 million
RSF, Total Sublease vacancies
rose from 3.04 million RSF
to 3.20 million RSF, leading
to an overall decline in
vacant space downtown from
12.82 million RSF to 12.14
million RSF. |
|
RETAIL: |
| +
Total Retail vacancies fell
from 0.48 million RSF to
0.44 million RSF. |
| +
Midtown Retail vacancies
declined from 0.16 million
RSF to 0.12 million RSF |
| +
Midtown South saw a slight
increase in availability
as Total Vacant Space rose
from 0.28 million RSF to
0.29 million RSF |
| +
Downtown Retail vacancy
rates remained unchanged |
INDUSTRIAL: |
| +
Total Industrial vacancy
rates remained unchanged
in all three market segments. |
|
| SELECTED
AMAZING DEALS: |
|
Building
Address
|
Size
|
Price
|
1330
Sixth Avenue. Hi end Installation.
Motivated credit sublessor. |
16,250
|
$25
|
1675
Broadway High floor with
panoramic views, high
end installation and credit
sublessor.
|
16,759
|
$35
|
32
Old Slip. Amazing Hi quality
installation. Good credit
sublessor. |
17,298
|
$18
|
Empire
State building subleases
too many to units to list
all. |
2,000-40,000
|
$20
|
444
Broadway. Hi end loft
installation Recent hi
end loft installation.
|
7500-30,000
|
$18
|
590
Madison Avenue. Dramatic
Central Park Views recent
installation, top credit
subtenant. |
13,599
|
$45 |
City
Spire 156 West 56 Beautiful
subleases renovated units
with furniture and phones
|
4,604-21,399
|
$25-33 |
OFFICE |
CLASS
A (In Millions of Rentable Square Feet)
|
|
Vacant Space |
|
Available now and in the next two years |
|
Direct |
Sublease |
Total |
% Vacant |
% Monthly Change |
|
Direct |
Sublease |
Total |
% Vacant |
% Monthly Change |
| Midtown |
9.96 |
6.47 |
16.43 |
5.50% |
9.10% |
8.73% |
|
21.62 |
8.92 |
30.54 |
0.39% |
| Midtown South
|
0.92 |
0.38 |
1.30 |
9.10% |
12.90% |
-14.40% |
|
0.92 |
0.55 |
1.47 |
-7.47% |
| Downtown
|
6.15 |
2.25 |
8.41 |
11.80% |
16.10% |
-0.89% |
|
8.25 |
3.79 |
12.04 |
-0.70% |
| Total |
17.04 |
9.10 |
26.14 |
7.00% |
10.70% |
4.48% |
|
30.79 |
13.26 |
44.05 |
-0.17% |
|
| |
TOTAL
MARKET (In Millions of Rentable Square
Feet)
|
| |
Vacant Space |
|
Available now and in the next two years |
| |
Direct |
Sublease |
Total |
% Vacant |
% Monthly Change |
|
Direct |
Sublease |
Total |
% Vacant |
% Monthly Change |
| Midtown |
16.40 |
8.01 |
24.40 |
6.90% |
10.20% |
6.44% |
|
30.22 |
11.46 |
41.68 |
2.02% |
| Midtown South |
7.11 |
3.10 |
10.21 |
11.70% |
16.90% |
3.33% |
|
8.58 |
3.80 |
12.37 |
1.91% |
| Downtown |
9.78 |
3.04 |
12.82 |
13.10% |
17.20% |
0.13% |
|
12.33 |
4.82 |
17.15 |
-0.59% |
| Total |
33.29 |
14.14 |
47.43 |
8.90% |
12.70% |
4.07% |
|
51.12 |
20.08 |
71.20 |
1.37% |
|
| |
RETAIL
(Total Market) |
| |
Vacant Space |
|
Available now and in the next two years |
| |
Direct |
Sublease |
Total |
% Vacant Direct |
% Vacant Total |
|
Direct |
Sublease |
Total |
| Midtown |
0.16 |
0.01 |
0.16 |
20.60% |
21.70% |
|
0.23 |
0.01 |
0.24 |
| Midtown South |
0.24 |
0.04 |
0.26 |
29.00% |
33.90% |
|
0.44 |
0.05 |
0.46 |
| Downtown |
0.04 |
0.00 |
0.04 |
27.40% |
27.40% |
|
0.05 |
0.00 |
0.05 |
| Total |
0.43 |
0.05 |
0.46 |
25.10% |
28.00% |
|
0.72 |
0.06 |
0.75 |
|
| |
INDUSTRIAL
(Total Market) |
| |
Vacant Space |
|
Available now and in the next two years |
| |
Direct |
Sublease |
Total |
% Vacant Direct |
% Vacant Total |
|
Direct |
Sublease |
Total |
| Midtown |
0.51 |
0.00 |
0.64 |
39.70% |
29.70% |
|
0.73 |
0.03 |
0.76 |
| Midtown South |
0.23 |
0.04 |
0.26 |
16.60% |
19.30% |
|
0.27 |
0.04 |
0.31 |
| Downtown |
0.00 |
0.00 |
0.00 |
N/A |
N/A |
|
0.21 |
0.00 |
0.21 |
| Total |
0.73 |
0.07 |
0.80 |
15.20% |
16.60% |
|
1.22 |
0.07 |
1.28 |
|
|
| MARKET
TREND OBSERVATIONS
OFFICE:
+
Total
Market Vacancies reversed their six-month
decline, rising from 45.50 million RSF
(Rentable Square Feet) to 47.43 million
RSF, while Class A Vacancies rose from
24.96 million RSF to 26.14 million RSF.
The increase in Total Market Vacancies
was largely due to a rise in Total Direct
Lease space from 31.51 million RSF to
33.29 million RSF.
+
Total
Direct Lease space increased from 31.51
million RSF to 33.29 million RSF, while
Total Sublease vacancies rose from 13.99
million RSF to 14.14 million RSF.
+
The
increase in Total Market Vacancy was a
result of a rise in space availability
in all three market segments (Midtown,
Midtown South and Downtown). Total Vacant
Space in Midtown rose from 22.83 million
RSF to 24.40 million RSF, while in Midtown
South it rose from 9.87 million RSF to
10.21 million RSF and in Downtown available
space rose slightly from 12.81 million
RSF to 12.82 million RSF.
+
Total
Vacant Space in Midtown rose as Total
Direct Lease space increased from 15.37
million RSF to 16.40 million RSF. Total
Sublease space increased from 7.46 million
RSF to 8.01 million RSF.
+
The
rise in Total Vacant Space in Midtown
South was due to an increase in Direct
Lease space from 6.67 million RSF to 7.11
million RSF.
+
While
Total Direct Lease vacancies increased
downtown from 9.48 million RSF to 9.78
million RSF, Total Sublease vacancies
fell from 3.33 million RSF to 3.04 million
RSF.
RETAIL:
+
Total
Vacant Retail space fell from 1 million
RSF to 0.46 million RSF.
+
In
midtown Total Vacant Space declined from
0.24 million RSF to 0.16 million RSF.
+
Midtown
South saw a slight increase in availability
as Total Vacant Space rose from 0.26 million
RSF to 0.28 million RSF.
+
Total
vacant space Downtown declined dramatically
from 0.5 million RSF to 0.04 million RSF.
INDUSTRIAL:
+
Total
market vacancies fell as all three segments
saw a decline in space availability.
+
Total
Vacant space in Midtown fell from 0.64 million
RSF to 0.54 million RSF.
+
In
Midtown South, Total Vacant Space declined
to 0.26 million RSF from 0.54 million RSF.
+
Downtown
industrial vacancies fell to zero. |
|
|
| Total
Market Vacancies reversed their six month
decline, rising from 45.50 million RSF
to 47.43 million RSF, while Class A Vacancies
rose from 24.96 million RSF to 26.14 million
RSF. |
|
|
|
| The
increase in Total Market Vacancies was
largely due to a rise in Total Direct
Lease space from 31.51 million RSF to
33.29 million RSF. |
|
|
|
| Total
Direct Lease space increased from 31.51
million RSF to 33.29 million RSF, while
Total Sublease vacancies rose from 13.99
million RSF to 14.14 million RSF. |
|
|
|
The
increase in Total Market Vacancy was a
result of a rise in space availability
in all three market segments. Total Vacant
Space in Midtown rose from 22.83 million
RSF to 24.40 million RSF, while in Midtown
South it rose from 9.87 million RSF to
10.21 million RSF and in Downtown available
space rose slightly from 12.81 million
RSF to 12.82 million RSF.
|
|
|
|
| Total
Vacant Space in Midtown rose as Total
Direct Lease space increased from 15.37
million RSF to 16.40 million RSF and Total
Sublease space increased from 7.46 million
RSF to 8.01 million RSF. |
|
|
|
The
rise in Total Vacant Space in Midtown
South was due to an increase in Direct
Lease space from 6.67 million RSF to 7.11
million RSF.
|
|
|
|
While
Total Direct Lease vacancies increased
downtown from 9.48 million RSF to 9.78
million RSF, Total Sublease vacancies
fell from 3.33 million RSF to 3.04 million
RSF.
|
|
|
|
| Total
Vacant Retail space fell from 1 million
RSF to 0.46 million RSF, as vacant space
declined in both Midtown from 0.24 million
RSF to 0.16 million RSF and in Downtown
from 0.5 million RSF to 0.07 million RSF.
Total vacant space in Midtown South increased
slightly to 0.28 million RSF from 0.26
million RSF. |
|
|
|
| Total
market vacancies fell as all three segments
saw a decline in space availability. Total
industrial vacant space in Midtown fell
from 0.64 million RSF to 0.54 million
RSF, while in Midtown South it declined
to 0.26 million RSF from 0.54 million
RSF, and in Downtown industrial vacancies
fell to zero. |
| |
|
