market research

January 2015

January 2015 New York Commercial Real Estate Market Report

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Manhattan Offices:
Manhattan office vacancies increased by almost 2 million square feet, as 1 World Trade Center opened and Conde Nast’s former space at 4 Times Square comes on the market. Also, almost 2 million square feet remains unspoken for at 3 World Trade Center. Additional office space will be added with the completion of 2 World Trade Center and two office buildings at Hudson Yards: 1 Manhattan West, 2,230,000 RSF and 3 Hudson Boulevard, 1,869,500 RSF.

Retail:
The 350,000 retail complex at World Trade Center is completely leased with fashion tenants and Eataly for the food component.

New York Market Overview

  • Total Manhattan Class A Office vacancies increased from 9.1 % vacant to 9.4 % vacant
  • Total New York City Office vacancy increased from 7.9 % vacant to 8.0 % vacant
Fifth Avenue in the 50's is now the world's most expensive area to lease retail stores due to increasing hoards of brand-hungry shoppers coming through Manhattan.

Despite a slight office market slowdown throughout Manhattan within the last month, subleasing is on the rise.

The final taking rents for the very top deals are at an all-time high in Midtown and Midtown South, and are near former high rents in Lower Manhattan.

Midtown Manhattan might be the most expensive office market in the U.S., but worldwide it is still a relative bargain.

Midtown's finance and legal tenants are the top tenants seeking space after TAMI in the technology, advertising, media and information sector. Seven of the top 10 leases in Manhattan's office market this year were finance and legal firms. Last year, the same tenants only accounted for three of the top 10 deals.

Office vacancies in Midtown South in November reached their lowest level in seven years.
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