July 2016 New York Commercial Real Estate Market Report


New York City Office: Manhattan Office leasing continued to be quiet with the largest lease being a renewal for UBS.

New York City Retail: Retail leasing remains slow with new store closures so rents will likely decline over the next 6 to 12 months.

  • Total Manhattan Class A Office vacancies stayed at 8.9 % vacant
  • Total New York City Office vacancy decreased from 8.1 % vacant to 8.0 % vacant

New York Market Overview

Demand for Manhattan office space slowed with monthly leasing of 1.8 million square feet of new Manhattan office leases, the lowest level of monthly leasing in 2016. Year-over-year, leasing activity is down 13.5%. But overall vacancy declined to 9% in May, a reduction of 10 basis points, or 0.1% which was due to a noticeable reduction in the amount of new space added to the market. Despite a slowdown in leasing velocity, a minimal amount of new supply hit the market, allowing for the overall vacancy to drop in the Tri-State area. Overall, Manhattan average asking rents climbed to $72.81 per square foot last month, up 3.8% from $70.13 per square foot in May 2015. Midtown rents, in particular, were strong, jumping 3.6% year-over-year to $79.04 per square foot, which was the highest level since December 2008.

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April 2016 NY Commercial Real Estate Market Report

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