July, 2002: Manhattan Office Space Update
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Prices continue to slide as the amount of vacant space continues to rise with rents now being 50% lower than a year ago. Prices are down by 20% around Grand Central, Penn Station and on the East and West 57th Street corridors where buildings are in demand near where people live or commute from.
A number of firms are now considering relocating to downtown locations where subleases are being offered in the $17-23/Rentable Square Feet for nice buildings equipped with furniture and phones. Combined with the economic incentives of up to $11/RSF it makes that net effective rental a single digit. More impressive are the REAP benefits if one goes to Long Island City or DUMBO where one can have net effective rents of zero and with the incentives lasting longer than downtown. Please feel free to contact us for more detailed pricing information.
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| MANHATTAN CLASS A OFFICE VACANT SPACE (In Millions of Rentable Square Feet)) |
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Direct |
Sublease, |
Total |
%
Vacant |
% Monthly
Change |
| Midtown Manhattan Office A |
9.5 |
5.9 |
15.4 |
5.4 % |
8.8 % |
| Midtown Manhattan South Office A |
0.4 |
0.2 |
0.6 |
5.5 % |
8.9 % |
| Downtown Manhattan Office A |
4.1 |
3.0 |
7.1 |
4.8 % |
8.3 % |
| Total Office A |
14.5 |
9.2 |
23.7 |
6.1 % |
9.9 % |
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MANHATTAN CLASS A OFFICE VACANT SPACE NOW AND IN THE NEXT TWO YEARS
(In Millions of Rentable Square Feet) |
| |
Direct |
Sublease |
Total |
|
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| Midtown Manhattan Office A |
21.2 |
8.2 |
29.4 |
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| Midtown Manhattan South Office A |
0.8 |
0.4 |
1.2 |
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| Downtown Manhattan Office A |
8.0 |
4.3 |
12.3 |
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| Total Office A |
30.4 |
13.0 |
43.4 |
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| MANHATTAN TOTAL OFFICE MARKET VACANT SPACE (In Millions of Rentable Square Feet)) |
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Direct |
Sublease |
Total |
%
Vacant |
%Monthly
Change |
| Midtown Manhattan Office |
18.0 |
7.6 |
25.6 |
7.5 % |
10.7 % |
| Midtown Manhattan South Office |
7.8 |
3.2 |
11.0 |
11.9 % |
16.7 % |
| Downtown Manhattan Office |
8.2 |
4.0 |
12.2 |
15.9 % |
15.9 % |
| Total Office |
35.0 |
14.8 |
49.8 |
9.0 % |
12.9 % |
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MANHATTAN TOTAL OFFICE MARKET VACANT SPACE NOW AND IN THE NEXT TWO YEARS
(In Millions of Rentable Square Feet)) |
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Direct |
Sublease, |
Total |
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| Midtown Manhattan Office |
31.8 |
10.9 |
42.7 |
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| Midtown Manhattan South Office |
10.1 |
3.8 |
13.9 |
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| Downtown Manhattan Office |
12.9 |
5.6 |
18.5 |
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| Total Office |
56.5 |
20.3 |
76.9 |
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