Office
vacancy rates continue their
consecutive monthly decline
in Manhattan as major firms
make major long-term commitments
throughout the city. The decline
in vacant office space is confusing
given that Wall Street and corporate
layoffs continue. One can only
assume that major corporations
are holding on to vacant spaces
until the New Year in order
to defer losses to the next
fiscal year. In light of the
falling rents, leasing activity
continues to be brisk as firms
are looking to lock into lower
cost space, both in Midtown
and Downtown.
Mayor
Michael Bloomberg signed an
18.5 percent property tax hike,
the largest in city history,
into law to help close steep
budget deficits. Companies should
make sure they get a Calendar
2003 Tax Base or face substantial
tax escalations.
Landlords
and sub-landlords (companies
trying to rent out excess space)
continue to add more soft dollars
for work and free rent in addition
to the already attractive prices.
Downtown
Incentives are still available
and firms who were originally
declined are encouraged to reapply.
Please
feel free to contact us for
more detailed pricing information.
|
| 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 |
Starrett
Lehigh Building 601 West
26th Street subleases |
25,000
|
$15 |
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 |
8.90 |
6.10 |
15.00 |
5.00% |
8.80% |
-2.17% |
|
20.63 |
8.61 |
29.23 |
-0.24% |
| Midtown South
|
0.96 |
0.53 |
1.49 |
9.50% |
14.30% |
-0.34% |
|
0.98 |
0.57 |
1.54 |
-1.17% |
| Downtown
|
5.95 |
2.53 |
8.48 |
11.40% |
16.50% |
-7.37% |
|
8.29 |
4.30 |
12.59 |
1.27% |
| Total |
15.81 |
9.16 |
24.97 |
6.80% |
10.70% |
-3.83% |
|
29.80 |
13.48 |
43.36 |
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 |
15.37 |
7.46 |
22.83 |
6.50% |
10.40% |
-2.95% |
|
30.30 |
11.24 |
41.54 |
-1.00% |
| Midtown South |
6.67 |
3.20 |
9.87 |
11.00% |
18.00% |
-2.06% |
|
10.88 |
3.78 |
14.66 |
3.76% |
| Downtown |
9.48 |
3.33 |
12.81 |
12.70% |
18.00% |
-5.41% |
|
12.84 |
5.46 |
18.31 |
0.21% |
| Total |
31.52 |
13.99 |
45.50 |
8.50% |
13.20% |
-3.45% |
|
54.02 |
20.48 |
74.51 |
-2.94% |
|
| |
RETAIL
(Total Market) |
| |
Vacant Space |
|
Available now and in the next two years |
| |
Direct |
Sublease |
Total |
% Vacant Direct |
% Vacant Total |
|
Direct |
Sublease |
Total |
| Midtown |
0.15 |
0.08 |
0.16 |
20.30% |
21.40% |
|
0.24 |
0.01 |
0.25 |
| Midtown South |
0.22 |
0.04 |
0.26 |
31.10% |
37.10% |
|
0.42 |
0.04 |
0.46 |
| Downtown |
0.50 |
0.00 |
0.50 |
32.50% |
32.50% |
|
0.57 |
0.00 |
0.57 |
| Total |
0.87 |
0.12 |
0.92 |
4.30% |
4.70% |
|
1.23 |
0.05 |
1.28 |
|
| |
INDUSTRIAL
(Total Market) |
| |
Vacant Space |
|
Available now and in the next two years |
| |
Direct |
Sublease |
Total |
% Vacant Direct |
% Vacant Total |
|
Direct |
Sublease |
Total |
| Midtown |
0.64 |
0.00 |
0.64 |
39.70% |
39.70% |
|
0.80 |
0.00 |
0.80 |
| Midtown South |
0.53 |
0.04 |
0.57 |
27.30% |
29.20% |
|
0.57 |
0.04 |
0.61 |
| Downtown |
0.15 |
0.00 |
0.15 |
81.10% |
81.10% |
|
0.15 |
0.00 |
0.15 |
| Total |
1.32 |
0.04 |
1.36 |
10.20% |
10.50% |
|
1.52 |
0.04 |
1.56 |
|
|
MARKET
TREND OBSERVATIONS
OFFICE:
+ Total Market Vacancies continued to
decline, falling to a six month low of
45.5 million RSF. Class A vacancies fell
to 24.96 million RSF from 25.92 million
RSF.
+ The fall in Total Market Vacancies was
due to a decline in both available Total
Direct Lease space from 32.37 million
RSF to 31.51 million RSF and available
Total Sublease Vacant space from 14.7
million RSF to 13.99 million RSF.
+ Total Direct Lease Vacancies fell to
a 7 month low of 31.51 million RSF, while
Total Sublease Vacancies fell to a 9 month
low of 13.99 million RSF.
+ The decrease in Total Market Vacancies
was due to a decline in space availability
in all three areas. Total Vacant Space
in Midtown fell from 23.5 million RSF
to 22.83 million RSF, while in Midtown
South it fell from 10.07 million RSF to
9.87 million RSF and in Downtown available
space decreased from 13.5 million RSF
to 12.81 million RSF.
+ Total Direct Lease Vacant Space in Midtown
declined to a 6 month low of 15.37 million
RSF while Total Sublease Vacant Space
fell from 7.71 million RSF to 7.46 million
RSF.
+ As in Midtown, Midtown South saw Total
Direct Lease Vacant Space fall to a 6
month low of 6.67 million RSF.
+ While Total Direct Lease Vacancies Downtown
continued their decline, falling from
9.73 million RSF to 9.48 million RSF ,
Total Sublease Vacant Space fell to a
6 month low of 3.33 million RSF.
RETAIL:
+ Retail notes asking prices remained
steady as vacancy increased.
+ Midtown vacancy increased from 116,000
feet to 163,000 feet
+ Midtown South vacancy increased from
180,000 SF to 262,000
+ Downtown vacancy remained constant at
50,500 SF
INDUSTRIAL:
+ Industrial asking prices remained steady.
+ Midtown decreased from 688,459 to 638,707
RSF
+ Midtown South increased from 497,000
to 568,000 RSF
+ Downtown vacancy remained constant at
148,000 RSF
|
|
|
| Total
Market Vacancies continued to decline,
falling to a six month low of 45.5 million
RSF. Class A vacancies fell to 24.96 million
RSF from 25.92 million RSF. |
|
|
|
| The
fall in Total Market Vacancies was due
to a decline in both available Total Direct
Lease space from 32.37 million RSF to
31.51 million RSF and available Total
Sublease Vacant space from 14.7 million
RSF to 13.99 million RSF.
|
|
|
|
| Total
Direct Lease Vacancies fell to a 7 month
low of 31.51 million RSF, while Total
Sublease Vacancies fell to a 9 month low
of 13.99 million RSF..
|
|
|
|
The
decrease in Total Market Vacancies was
due to a decline in space availability
in all three areas. Total Vacant Space
in Midtown fell from 23.5 million RSF
to 22.83 million RSF, while in Midtown
South it fell from 10.07 million RSF to
9.87 million RSF and in Downtown available
space decreased from 13.5 million RSF
to 12.81 million RSF.
|
|
|
|
| Total
Direct Lease Vacant Space in Midtown declined
to a 6 month low of 15.37 million RSF
while Total Sublease Vacant Space fell
from 7.71 million RSF to 7.46 million
RSF.
|
|
|
|
As
in Midtown, Midtown South saw Total Direct
Lease Vacant Space fall to a 6 month low
of 6.67 million RSF.
|
|
|
|
While
Total Direct Lease Vacancies Downtown
continued their decline, falling from
9.73 million RSF to 9.48 million RSF ,
Total Sublease Vacant Space fell to a
6 month low of 3.33 million RSF.
|
|
