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September, 2002: Manhattan Office Space Update


Prices continue to drift downward as more space comes on the market and companies are being cautious in making new commitments. Amazing prices are showing up in both sublease and in the direct space markets all over town. Quality subleases are available in the mid to high teens in B buildings, and nice subleases in A buildings, in the mid 30's to low 40's.

Please feel free to contact us for more detailed pricing information.

 MANHATTAN CLASS A OFFICE VACANT SPACE (In Millions of Rentable Square Feet))
   Direct  Sublease,  Total  % Vacant
Direct		  % Vacant
Total		  % Monthly
Change
Midtown Manhattan Office A 9.35 5.81 15.16 5.30% 8.60% -3.47%
Midtown Manhattan South Office A 0.51 0.45 0.96 5.10% 9.60% 6.44%
Downtown Manhattan Office A 5.67 3.00 8.67 10.60% 16.20% 0.78%
Total Office A 15.53 9.26 24.79 6.40% 10.30% -1.27%
             
MANHATTAN CLASS A OFFICE VACANT SPACE NOW AND IN THE NEXT TWO YEARS
(In Millions of Rentable Square Feet)
   Direct  Sublease  Total %Monthly
Change		    
Midtown Manhattan Office A 20.85 8.45 29.31 -1.00%
Midtown Manhattan South Office A 1.04 0.52 1.56 3.93%
Downtown Manhattan Office A 8.23 4.20 12.43 -1.36%
Total Office A 30.12 13.17 43.30 -0.69%    
             


 MANHATTAN TOTAL OFFICE MARKET VACANT SPACE (In Millions of Rentable Square Feet))
   Direct  Sublease  Total % Vacant
Direct		 % Vacant
Total		  %Monthly
Change
Midtown Manhattan Office 17.85 7.69 25.55 7.4% 10.6% -2.54%
Midtown Manhattan South Office 8.28 3.37 11.66 12.4% 17.5% 4.8%
Downtown Manhattan Office 9.44 4.05 13.50 12.1% 17.4% 2.22%
Total Office 36.64 15.15 51.78 9.4% 13.3% 1.31%
             
MANHATTAN TOTAL OFFICE MARKET VACANT SPACE NOW AND IN THE NEXT TWO YEARS
(In Millions of Rentable Square Feet))
   Direct  Sublease,  Total %Monthly
Change		    
Midtown Manhattan Office 31.13 10.92 42.05 -1.07%
Midtown Manhattan South Office 10.22 3.93 14.15 -1.06%
Downtown Manhattan Office 12.76 5.52 18.28 -0.65%
Total Office 55.83 20.41 76.24 -1.00%
             

New York City Market Trend Observations:

  • While total sublease vacant space has steadied around the 15 million RSF mark, direct lease vacant space has increased from 29 million RSF to 36 million RSF over the last half year.
  • Total Class A direct vacancies have grown faster than total Class A sublease vacancies.
  • In Midtown, the Direct-Sublease Ratio has been consistent within the 2.35 and 2.45 range through the last quarter.
  • Midtown Class A vacancies maintained a relatively steady Direct-Sublease Ratio, the small fluctuation in direct lease spaces resulting in significantly large change in the ratio due to the small numbers involved.
  • Midtown South Direct-Sublease Ratio shot up in July due to a simultaneous increase in direct space and decrease in sublease space.
  • Due to the volatility of the Direct-Sublease Ratio and small magnitude of the numbers involved, this Direct-Sublease Ratio for Midtown South is not very conclusive.
  • Downtown direct lease spaces have increased significantly over the last 4 months, moving the Direct-Sublease Ratio up steadily from 1.75 to over 2.25. Sublease space has remained by and large the same.
  • Downtown Class A vacancy number show a rapidly increasing Direct-Sublease Ratio due to direct lease space more than doubling over the last 4 months.
  • Total sublease space has been more or less constant over the last 10 months. Fluctuations in total vacant spaces are thus strongly correlated to swings in direct lease spaces.
  • The increase in downtown vacancies has been the largest contributor to the increase in vacant space.
 
Manhattan Office Rent
  • While total sublease vacant space has steadied around the 15 million RSF mark, direct lease vacant space has increased from 29 million RSF to 36 million RSF over the last half year.
 
Total Class A Manhattan direct vacancies
  • Total Class A direct vacancies have grown faster than total Class A sublease vacancies.
 
Midtown Direct Rent
  • In Midtown, the Direct-Sublease Ratio has been consistent within the 2.35 and 2.45 range through the last quarter.
 
Midtown Class A Rent
  • Midtown Class A vacancies maintained a relatively steady Direct-Sublease Ratio, the small fluctuation in direct lease spaces resulting in significantly large change in the ratio due to the small numbers involved.
 
Manhattan Midtown South Office Rent
  • Midtown South Direct-Sublease Ratio shot up in July due to a simultaneous increase in direct space and decrease in sublease space.
 
Manhattan Office Rent
  • Due to the volatility of the Direct-Sublease Ratio and small magnitude of the numbers involved, this Direct-Sublease Ratio for Midtown South is not very conclusive.
 
Manhattan Downtown Office
  • Downtown direct lease spaces have increased significantly over the last 4 months, moving the Direct-Sublease Ratio up steadily from 1.75 to over 2.25. Sublease space has remained by and large the same.
New York Downtown Office
  • Downtown Class A vacancy number show a rapidly increasing Direct-Sublease Ratio due to direct lease space more than doubling over the last 4 months.
NYC sublease space
  • Total sublease space has been more or less constant over the last 10 months. Fluctuations in total vacant spaces are thus strongly correlated to swings in direct lease spaces.
New York City Downtown Office
  • The increase in downtown vacancies has been the largest contributor to the increase in vacant space.