New York Market Overview
- Total Manhattan Class A Office vacancies stayed at 8.7 % vacant
- Total New York City Office vacancy stayed at 7.4 % vacant
50 Midtown Manhattan buildings have at least 100,000 square feet of contiguous availability. The average size of these Midtown blocks is just under 310,000 square feet, Hudson Yards Number 1 (has 1 million square feet, 1221 Avenue of the Americas has 780,000 square feet available. these buildings have about 15.5 million square feet available. Four of the 50 blocks are subleases, and 46 are direct by landlord. 40 of the 50 are within the Class A segment of the market; the rest are Class B in either of Penn/Garment or Grand Central submarkets.
Grand Central has almost twice the available number of large blocks, with almost double the number of the next highest Times Square.
Technology, advertising, education and professionals flocking to Class B Midtown South is driving the recovery, with asking rents up 46 percent since their low of 2010. This is significantly higher than Midtown Class A’s rental increases during this same period, which were 23 percent.
If demand for Class A space in Midtown remains stagnant throughout 2013, a price correction for the high-end spaces could occur, with landlords likely to increase concession packages.
Class A office space in Manhattan now accounts for 62 percent of the total available supply — a significantly higher percentage than in past recovery cycles.
Retail rents for Times Square reached $2,025 a square foot as the Sunglass Hut inked a deal with Vornado Realty Trust for 1540 Broadway.