New York Market Overview
- Total Manhattan Class A Office vacancies decreased from 9.5 % vacant to 9.3 % vacant
- Total New York City Office vacancy decreased from 8.0 % vacant to 7.9 % vacant
The average asking rent for Manhattan's most expensive retail corridor on Fifth Avenue between 49th and 59th streets rose 4 % from $3,420 in fall 2014 to $3,683 this spring. Asking rents for ground-floor retail space along East 57th Street between Fifth and Park avenues were up 60 % from fall 2014. Eight of Manhattan's major retail corridors saw moderate rent growth from the previous quarter. Five of Manhattan's hottest retail corridors saw asking rents get double-digit %age increases year-over-year, with two of them rising over 20 %.
Herald Square, 34th Street from Fifth to Seventh avenues, saw rents rise 22.4 % year-over-year to $988 per square foot, while Fifth Avenue from 42nd to 49th streets saw a 22.3 % to $1,338. Third Avenue from 60th to 72nd Streets asking rents rose 19 % to $333 per foot. Broadway retail rents from 72nd to 86th Streets on the Upper West Side were up 15 %to $375, and 14th Street in the Meatpacking District from Eighth to 11th avenues, up 11 % to $394.
Rents along Prince and Spring streets in Soho, are higher than Broadway. Broadway rents averaged $853 per foot, Prince Street averaged $1,038 and Spring Street averaged $1,031. Wooster Street retail rents ranging from $200 to $600.
The Midtown office values exceeding 2007 peak levels. Property values increased 13 % over the last 12 months and is up 10 % since mid-2007.
The Midtown office in the first quarter of 2015, with effective rents for Class A space increasing 5.1 % over the previous quarter. Midtown South effective rents declined after three consecutive quarters of growth. The average effective rent - the rent paid adjusted for concessions such as free rent and tenant improvements - for Class A space in Midtown was $72.45 an increase of $3.68 per square foot in the first quarter.
The market for Class B Midtown office space drop $1.95 per square foot to about $50 per square foot. Average concessions ratios in the Midtown office market increased to 10 % of total lease value. The Midtown South office market cooled off, dipping to an effective rent of under $60 per square foot.
New leases comprised of more than 71 % of total Midtown South lease activity in the quarter, in Average concession values in the market were unchanged at 9 % of total lease values.
The Downtown office market average effective rents rose 3.7 % to $41.99 per square foot. The ratio of new leases to renewals for the Downtown market was 84 % of transactions.