September
2004: Manhattan Office, Retail and
Industrial Space Update
Buildings for Sale
- Tommy Hilfiger Corp plans to sell 485 Fifth Avenue
- 1180 Avenue of Americas 365,000 square foot 22 story fully leased building.
Large Leases
- Tommy Hilfiger Corp. leased 200,000 square feet at 601 West 26th Street.
- Ann Taylor Stores Corp. leased 300,000 square feet in 7 Times Square
Planned New Buildings
- Goldman, Sachs & Co. is planning to build a $1.8 billion 2 million square feet headquarters on the last remaining commercial parcel at Battery Park City and is expected to open in 2009. Goldman is to get $1 billion in Liberty Bond financing for the project. (Probably vacate current space)
- One Bryant Park 1,000,000 available
- 7 World Trade Center. 1.6 million square feet completed by the end of next year
- The Times tower has 700,000 square feet available
- 505 Fifth Ave. at 42nd Street has about 300,000 available.
- 340 Madison Ave. has 600,000 available.
- Total 4.2 million of new space is a small percentage of the 400 million square feet Manhattan office inventory.
New Residential Construction
- One Carnegie Hill, a new 42-story apartment building on East 96th Street between Second and Third avenues on a 99-year ground lease from the Islamic Cultural Center of New York to become 475 luxury apartments the lower half rental units and the upper half, for-sale units. Total building size 582,000 gross square feet including a 63,000 square-foot "community facility" - a school operated by the ICCNY with its own entrance on East 97th Street.
Buildings Sold
- The Plaza Hotel is in contract for $US675 million to Elad Properties and is expected to close before the end of the year. The seller were the Plaza Operating Partners Ltd, a partnership between British hotel group Millennium & Copthorne and Saudi Prince Alwaleed bin Talal. Donald Trump sold the hotel in 1995 for $325 million.
Residential Market
- The Residential market remains red hot. Planned apartment projects until 2006 total 132. Completed projects in 2004 were 58 with 50 projects still under construction. In 2003 35residential projects were built and in 2002 23 projects were built.
|
MARKET
HIGHLIGHTS
|
OFFICE: |
- Total
Class A vacancies increased from 23.19
million RSF to 23.31 million RSF, while
Total Market vacancies decreased as well
from 38.98 million RSF to 37.54 million
RSF.
-
Total
Market Vacancies decreased as Total Direct
availability decreased from 29.81 million
RSF to 29.15 million RSF while Total Sublease
Lease availability decreased from 9.17
million RSF to 8.39 million RSF.
- Total
Direct Lease availability decreased from
29.81 million RSF to 29.15 million RSF,
while Total Sublease vacancies decreased
to 8.39 million RSF from 9.17 million
RSF.
- Total
Market vacancy decreased as Midtown South
availability decreased from 6.91 million
RSF to 6.69 million RSF even though Midtown
availability decreased from 21.92 million
to 20.96 million RSF. Total Downtown Vacancy
rates decreased as well from 10.15 million
RSF to 9.89 million RSF.
- Total
Vacant space in Midtown decreased due
to the decrease in Total Sublease Lease
space availability from 5.79 million RSF
to 5.21 million RSF, in spite of Total
Direct availability decreasing from 16.13
million RSF to 15.75 million RSF.
- Midtown
South Direct Lease availability decreased
from 5.81 million RSF to 5.71 million
RSF, and Sublease vacancies declined from
1.10 million RSF to 0.98 million RSF.
- Total
Downtown vacancies decreased due to
decrease in Direct space from 7.87 million
RSF to 7.70 million RSF, even though
Sublease availability increased from
2.28 million RSF to 2.20 million RSF.
|
|
RETAIL:
|
- Total
Retail availability fell from 0.50 million
RSF and 0.43 million RSF.
- In Midtown
and Downtown, availability remained constant
at 0.19 million RSF and 0.04 million RSF
respectively.
- Total Midtown South vacancy
rates decreased from 0.24 million RSF
to 0.21 million RSF.
|
INDUSTRIAL: |
- Total
Industrial Vacant space decreased from
0.96 million RSF to 0.91 million RSF due
to a decrease in Total vacancies in Midtown
South from 0.41 million RSF to 0.36
million RSF, and Midtown vacancies increasing
to 0.50 million RSF from 0.41 million
RSF.
- Downtown vacancies remain unchanged
at 0.02 million RSF.
|
| |
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 |
10.29 |
4.33 |
14.62 |
9.80% |
-5.24% |
17.43 |
8.14 |
25.57 |
12.13% |
2.01% |
| Midtown
South |
0.71 |
0.14 |
0.85 |
10.40% |
10.21% |
1.59 |
0.28 |
1.87 |
13.13% |
1.28% |
| Downtown
|
5.01 |
1.83 |
6.84 |
11.90% |
-2.49% |
8.77 |
2.43 |
11.20 |
15.56% |
-0.57% |
| Total |
16.20
|
6.29 |
22.31 |
10.60% |
-3.81% |
27.78 |
10.86 |
38.64 |
13.01%
|
1.23% |
|
| |
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 |
15.75 |
5.21 |
20.96 |
9.40% |
-4.60% |
24.37 |
9.79 |
34.17 |
11.37% |
0.99% |
| Midtown
South |
5.71 |
0.98 |
6.69 |
9.60% |
-3.38 |
8.57 |
1.57 |
10.15 |
10.79% |
-4.62% |
| Downtown
|
7.70 |
2.20 |
9.89 |
11.70% |
-2.56 |
12.01 |
3.23 |
15.24 |
14.13% |
0.35% |
| Total |
29.15 |
8.39 |
37.54 |
10.10%
|
-3.84 |
44.96 |
14.59 |
59.55 |
11.85 |
-0.13% |
|
| |
| |
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 |
0.19 |
0.00 |
0.19 |
3.50% |
-17.74 |
0.31 |
0.05 |
0.36 |
5.57% |
-9.22 |
| Midtown
South |
0.20
|
0.01 |
0.21 |
6.80% |
-13.33% |
0.30 |
0.01 |
0.31 |
5.97% |
-34.31% |
| Downtown
|
0.04 |
0.00 |
0.04 |
2.30% |
-5.41 |
0.04 |
0.00 |
0.04 |
2.30% |
-7.89% |
| Total |
0.42
|
0.01 |
0.43 |
4.90% |
-14.55% |
0.65 |
0.06 |
0.70 |
5.33% |
-20.09% |
|
| |
| |
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 |
0.50
|
0.03 |
0.53 |
9.60%
|
0.00% |
0.75 |
0.03 |
0.78 |
13.12% |
1.02% |
| Midtown
South |
0.36
|
0.00 |
0.36 |
5.10% |
-13.65% |
0.45 |
0.00 |
0.46 |
6.11% |
-1.54% |
| Downtown
|
0.02
|
0.00 |
0.02 |
3.60% |
0.00% |
0.02 |
0.00 |
0.02 |
3.44% |
4.35% |
| Total |
0.88 |
0.03 |
0.91 |
7.20% |
-5.25% |
1.23 |
0.03 |
1.26 |
8.95% |
0.16% |
|
|
|
| Total
Class A vacancies increased from 23.19
million RSF to 23.31 million RSF, while
Total Market vacancies decreased as well
from 38.98 million RSF to 37.54 million
RSF. |
|
|
|
| Total
Market Vacancies decreased as Total Direct
availability decreased from 29.81 million
RSF to 29.15 million RSF while Total Sublease
Lease availability decreased from 9.17
million RSF to 8.39 million RSF. |
|
|
|
| Total
Direct Lease availability decreased from
29.81 million RSF to 29.15 million RSF,
while Total Sublease vacancies decreased
to 8.39 million RSF from 9.17 million
RSF. |
|
|
|
| Total
Market vacancy decreased as Midtown South
availability decreased from 6.91 million
RSF to 6.69 million RSF even though Midtown
availability decreased from 21.92 million
to 20.96 million RSF. Total Downtown Vacancy
rates decreased as well from 10.15 million
RSF to 9.89 million RSF. |
|
|
|
| Total
Vacant space in Midtown decreased due
to the decrease in Total Sublease Lease
space availability from 5.79 million RSF
to 5.21 million RSF, in spite of Total
Direct availability decreasing from 16.13
million RSF to 15.75 million RSF. |
|
|
|
Midtown
South Direct Lease availability decreased
from 5.81 million RSF to 5.71 million
RSF, and Sublease vacancies declined from
1.10 million RSF to 0.98 million RSF.
|
|
|
|
Total
Downtown vacancies decreased due to
decrease in Direct space from 7.87 million
RSF to 7.70 million RSF, even though
Sublease availability increased from
2.28 million RSF to 2.20 million RSF.
|
|
|
|
| Total
Retail availability fell from 0.50 million
RSF and 0.43 million RSF. In Midtown
and Downtown, availability remained constant
at 0.19 million RSF and 0.04 million RSF
respectively. Total Midtown South vacancy
rates decreased from 0.24 million RSF
to 0.21 million RSF. |
|
|
|
| Total
Industrial Vacant space decreased from
0.96 million RSF to 0.91 million RSF due
to a decrease in Total vacancies in Midtown
South from 0.41 million RSF to 0.36
million RSF, and Midtown vacancies increasing
to 0.50 million RSF from 0.41 million
RSF. Downtown vacancies remain unchanged
at 0.02 million RSF. |
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