market research

July 2019

July 2019 New York Commercial Real Estate Market Report

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Manhattan Office:

Manhattan Office Rental Market saw an average asking rent increase of 0.7% despite 20.8 million square feet of space in the pipeline and more office developments pending.

Manhattan Retail:

Announced new deals were down substantially from the same period last year. This could be due to signed leases from a year ago for the retail at Hudson Yards opening along with select retailers previously announcing select new locations. Expect pressure on retail rent pricing to continue.

Building Sales:

Expect continued calm as investors await American foreign policy effects and where the fed cuts interest rates.

New York Market Overview

  • Total Manhattan Class A Office vacancies increased from 8.2 % vacant to 8.7 % vacant
  • Total New York City Office vacancy increased from 8.2 % vacant to 8.6 % vacant
Manhattan Office Market saw an average asking rent increase of 0.7% despite 20.8 million square feet of space in the pipeline.

Midtown office leasing continues to rise, totalling 1.85 million square feet, a 38% increase from the month before. The availability rate stayed flat at 10.7%, while the average asking rent hit an all-time high of $88.20, breaking a record set in 2008. The largest deal in Midtown was AIG, which leased around 320,237 square feet at 1271 Sixth Avenue.

Leasing activity in Midtown South rebounded, to 680,000 square feet in leases, more than the previous two months combined. The availability rate rose to 10.5% and the average asking rent rose to $84.70 per square foot. The submarket’s largest deal was at the Pier 57 office redevelopment, where a 170,421-square-foot expansion was signed.

Lower Manhattan office leasing was down 29% totalling 450,000 square feet, enough to push year-to-date leasing activity to the highest level since 2002. The availability rate rose slightly to 13.5%, and the average asking rent went to $62.16 per square foot.
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