New York Market Overview
- Total Manhattan Class A Office vacancies decreased from 9.0 % vacant to 8.9 % vacant
- Total New York City Office vacancy decreased from 7.9 % vacant to 7.8 % vacant
New York City has, one million square feet too much real estate. We have to look at where we own, where we lease, the air rights and development rights and look broadly to return as much as possible to the private sector. Possible places that can be downsized are the 50 data centers and 100 garages in the city.
Midtown South pushes Manhattan vacancy rate down. Overall vacancy rates in Manhattan declined in November to 12.3 percent, from 12.4 percent in October. The decrease was largely in part to a number of smaller transactions in the Midtown South market, which saw strength across most of its submarkets, with vacancy rates falling to 12.2 percent from 12.8 percent. The average asking rent in Manhattan saw a small boost last month, rising to $47.57 per square foot, from $47.23 in October.
Mortgage delinquencies across the country are expected to decline significantly in 2011 as the economy continues to stabilize. The national mortgage loan delinquencies, the number of borrowers 60 or more days past due, will drop close to 20 percent by the end of 2011 to 4.98 percent, from an expected 6.21 percent at the end of 2010. The projected decrease in 60-day mortgage delinquencies would more than double the 9.87 percent yearly decline that is expected between the end of 2009 and 2010, from 6.89 percent to 6.21 percent.
Office tenants in Midtown leased more space in November than in any month since the middle of 2006, as new office leasing rang in at double the monthly average. The month's robust leasing activity, the largest single-month total since June 2006, was achieved by deals of all sizes across the entire market. Tenants struck relocation or expansion deals for more than 2.4 million square feet in Midtown, compared with 1.2 million square feet the month before.