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Old NYC Real Estate News Archive for 2005 |
| December 2005: Rent Office in Manhattan Monthly Update of New York Real Estate The Manhattan office market continues to tighten to record low vacancies with only one new office building nearing completion (Hearst headquarters at 959 Eighth Avenue). Office, industrial, and retail vacancy rates dropped steadily throughout 2005 in all Manhattan neighborhoods, resulting from limited supply and ever-increasing demand space. |
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| November 2005: New York Office Rental, New York Retail Rental and NYC Industrial Rental Space Update The overall office market in Manhattan continues the long trend of tightening. However, there are still deals to be had in select markets. In particular, the Downtown office market is remarkably low-rate compared to the sky high Midtown prices. Quality office space in the financial district is running in the $20's and $30's. Meanwhile, the industrial and retail space markets are loosening slightly with the addition of small properties on the market. |
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| October 2005: NYC Office, NYC Retail and NYC Industrial Space Office rents in Midtown moderated as the office market cooled over the summer. The question is will the rents pick up if demand picks up given limited availability. Downtown rents remained firm but with Goldman Sachs' decision to build a new 2,000,000 SF office building, downtown rents should soften as Goldman’s old space gets put on the market. Retail demand remains firm and retail rents are firm. |
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| September 2005: Manhattan Office Space, Manhattan Retail Space and Manhattan Industrial Space Office rents in Midtown moderated as the office market cooled over the summer. The question is will the rents pick up if demand picks up given limited availability. Downtown rents remained firm but with Goldman Sachs decision to build a new 2,000,000 SF office building, downtown rents should soften as Goldman’s old space gets put on the market. Retail demand remains firm and retail rents are firm. |
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| August 2005: New York City Office, Retail and Industrial Space Update The market continues to tighten as the employment continues to increase and demand is strong. Landlords are diminishing rent concessions in terms of work offered and free rent while slowly increasing prices. Downtown 7 World Trade Center is still mainly vacant with only one 20,000 lease signed out a total building size of 1.7 million square feet. |
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| July 2005: New York City Office, Retail and Industrial Space Update Two more sports stadiums are announced ( Mets and Yankees) bring the total to four proposed stadiums in NYC. The market continues to tighten as new construction is delayed and existing space gets absorbed. |
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June
2005: New York City Office Rental, New York City Retail Rental and New York City Industrial Rental Update The market continues to tighten as new construction is delayed and existing space gets absorbed. With only a few new construction projects in Midtown, Landlords continue to offer less and less soft dollars for work and free rent. Downtown Landlords breathe a sigh of relief as 4.5 million square feet of new construction has been delayed. |
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May 2005: Manhattan Office Rental, Manhattan Retail Rental and Manhattan Industrial Rental Sales market remains tight with limited new construction on the horizon. However, several major hotels were sold for conversion into condos. Approval for the Jets stadium is still up in the air. The Consumer Price Index (CPI) rose 1.7 percent in the New York City area, the largest month-over-month increase in 23 years. The rise was driven by rising real estate sales and rental markets as well as the increase in travel, clothing and mass transit. The Jets stadium is in jeopardy with Sidney Sheldon threatening litigation to squash any plans for a stadium. Talks for the Goldman Sachs headquarters downtown are still ongoing. Goldman has assured the city that they have no plans to leave New York City, |
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| April 2005: Manhattan Office, Retail and Industrial Space Update It was a busy month with an active Manhattan leasing market, New York building sales and the Jets getting the nod for the Hudson Yard’s site: There were several notable deals completed; 200 Park Avenue sold for $1.72 billion, the third largest deal in the New York City's history. The Jets won the development rights for the Hudson Rail Yards on the West Side for $720 million. |
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| March 2005: Manhattan Office Rental, Manhattan Retail Rental and Manhattan Industrial Rental Update With an 8.6% vacancy rate and little new construction planned, the Midtown office market continues to tighten. Midtown office prices will continue to rise unless tenants move Downtown. Two current examples: at Rockefeller Center, Tishman has stopped giving tenants pre-builds meaning that Tenants will have to come out of pocket to complete their offices. |
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February 2005: Manhattan Office Rental, Manhattan Retail Rental and Manhattan Industrial Rental Update Midtown and Soho Landlords continue to test the market to see how high they can raise their rents while decreasing the value of their contributions for Tenant Work and Free Rent. Soho rental prices which were around $20/RSF 18 months ago are now in the $32-40/RSF range. |
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| January 2005: Manhattan Office, Retail and Industrial Space Update The office, retail, and industrial markets continue to tighten with demand increasing and very limited new product coming to market: Landlords in the Plaza district have hopes of getting $100/RSF again with the General Motors building already there. Large Corporations are extending and renewing their leases which further tighten future potential vacancies. The prognosis for the coming year is limited supply, higher prices and reduced Landlord concession packages (free rent, Landlord work and other lease concessions). |
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