market research

June 2019

June 2019 New York Commercial Real Estate Market Report

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Manhattan Office:

Strong office demand decreased vacancy by 890,000 RSF last month. Space availability was down in Midtown, Midtown South, and Downtown while asking rents crept higher.

Manhattan Retail:

Retail demand was moderate with demand coming from Gyms, schools, and clothing. Expect to see continued downward pressure on rents until vacancy returns to a new normal.

New York Market Overview

  • Total Manhattan Class A Office vacancies decreased from 10.1 % vacant to 8.2 % vacant
  • Total New York City Office vacancy increased from 8.0 % vacant to 8.2 % vacant

Manhattan Office:

Midtown office leasing bounced back, totaling 1.34 million square feet, a 35% increase from the prior month prior. The availability rate dipped to 10.7%, and average asking rents rose to $86.57.

Leasing activity in Midtown South was 230,000 square feet down 15% from the year before. The availability rate rose to 10.2%, while the average asking rents jumped to $83.51 per square foot.

Lower Manhattan had 42% more office leasing activity than the previous month totaling 640,000 square feet, which is up 2.5 times the same month last year. The availability rate fell slightly to 13.3%, and the average asking rent was flat at $62.16 per square foot.

The top 10 office lease deals totaled 1.4 million square feet, more than double last month’s top 10 leases, which totaled 637,000 square feet. However, the total does not measure up to the top ten office leases of April, 2018, which totaled 1.9 million square feet.

Total Manhattan Class A Office vacancies decreased from 10.1 % vacant to 8.2 % vacant

Manhattan Retail:

Fifth Avenue retail rents on the strip between 49th and 59th streets are down 11% from their peak in early 2017 to $2,779 a square foot. The availability rate is 27.5% up from 25% in the first quarter of the year.

As the city’s luxury fashion areas remain popular, rents have stabilized. Asking rents along main Broadway shopping area are in a range of $300 to $900 per foot.

All together, the top 10 retail leasing deals totaled less than last month in terms of square footage.

The 10 biggest retail lease deals signed last month totaled 178,200 square feet, down 15,900 square feet from March’s total of 194,100 square feet. The largest retail lease was in Chelsea.
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