market research

December 2013

December 2013 New York Commercial Real Estate Market Report

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Legal, medical and education were the major office Tenants in the Manhattan market. These sectors picked up the weak demand from Banks and Investment Firms. Retail remains strong, as the number of tourists coming to NY surpasses 51 million.

New York Market Overview

  • Total Manhattan Class A Office vacancies increased from 9.6 % vacant to 9.7 % vacant
  • Total New York City Office vacancy increased from 8.2 % vacant to 8.3 % vacant
Fifth Avenue retail rents remain high but a distant second to Hong Kong’s Causeway Bay. Average Fifth Avenue Retail rents from 50th to 57th Street are $2,500 per square foot.

Retail rents in the Financial District on Broadway have area increased 69 percent, over the last six months. The asking retail rents on Broadway between Battery Park and Chambers Street reached $257 per square foot.

Tech companies usually get the credit for keeping the Manhattan office leasing market strong while financial and legal services are shrinking. However, the larger office deals in Manhattan signed over the past year have been in other industries altogether.

The Manhattan office leasing market continued to get stronger in the third quarter, the number of large deals fell considerably. Only two deals were valued north of $100 million, compared to seven in the previous quarter.

Manhattan office landlords raked in slightly more per square foot from their leases last quarter. Effective rents remain below their 2008 peak. The effective rent in Midtown was $58.15 per square foot, while the rate in Midtown South was $47.37 per foot and $38.10 per foot Downtown
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