New York Market Overview
- Total Manhattan Class A Office vacancies increased from 9.5 % vacant to 9.7 % vacant
- Total New York City Office vacancy increased from 8.0 % vacant to 8.2 % vacant
The most valuable office lease both in size and price signed in Manhattan last year was the $1.7 billion to the owners of 11 Madison Avenue over 20 years. The 1.1 million-square-foot renewal by Credit Suisse starts at $84 million/year for the building's owners.
TAMI tenants continue to dominate the Manhattan office market.
New York City's largest banks are now primed to delve into the real estate market after years of laying low in the wake of the financial crisis.
The Garment District area has seen an influx of hotels in the last decade. The city is now considering zoning changes that would remove restrictions on landlords, so they can rent their buildings entirely to office tenants.
New product put on the market with an eye toward capturing broad rent increases boosted the availability rate across Manhattan last month. It was the first time in nearly a year availability rose in all three of the borough's office leasing submarkets.
Of the top 50 largest lease deals of 2014 in New York City, tech firms were responsible for seven, accounting for a combined 1.3 million square feet of office space.
From RTH Realty's sale of a Fifth Avenue commercial building for $17.3 million to Criterion's $10 million Queens retail flip is a glance at how New York City's investment sales market for properties between $10 million and $20 million fared recently.
While parts of the commercial real estate market might be reaching a peak, there is still room to run for office rents. Retail rents are quite extraordinary and there is going to be some pushback from retailers on that. There is room to grow where office deals are concerned, as companies are more willing to sign large leases.