New York City office
and retail Market Research

March 2014

March 2014 New York Commercial Real Estate Market Report

  • Page 1

Manhattan office market continues to tighten and as a result rents continue to rise as the economy rebounds. There is a prediction that by 2017 all class B buildings in Manhattan will be full, which means office rents will rise to the cost of new construction which need a minimum rent of $80/RSF to get built.

Times Square retail rents for prime locations are 2,500 per SF per year. Four years ago they were $1,000 per SF. Madison Avenue rents are $2,000 per SF in low 60’s. They had been as low as $1000 per SF. Fifth Avenue rents in the 50's are asking $3,000 per SF which pushes retailers ever further down Fifth Avenue towards 42nd Street.

New York Market Overview

  • Total Manhattan Class A Office vacancies decreased from 9.9 % vacant to 9.8 % vacant
  • Total New York City Office vacancy decreased from 8.4 % vacant to 8.3 % vacant
Fifth Avenue retail rents remain high but a distant second to Hong Kong's Causeway Bay. Average Fifth Avenue Retail rents from 50th to 57th Street are $2,500 per square foot.

Retail rents in the Financial District on Broadway have area increased 69 percent, over the last six months. The asking retail rents on Broadway between Battery Park and Chambers Street reached $257 per square foot.

Tech companies usually get the credit for keeping the Manhattan office leasing market strong while financial and legal services are shrinking. However, the larger office deals in Manhattan signed over the past year have been in other industries altogether.

The Manhattan office leasing market continued to get stronger in the third quarter, the number of large deals fell considerably. Only two deals were valued north of $100 million, compared to seven in the previous quarter.

Manhattan office landlords raked in slightly more per square foot from their leases last quarter. Effective rents remain below their 2008 peak. The effective rent in Midtown was $58.15 per square foot, while the rate in Midtown South was $47.37 per foot and $38.10 per foot Downtown.
  • Page 1
  • Green Acres Is the Place for Macerich
  • Billionaire Shows How Small Buildings in NYC Can Mean Big Money
  • Optimal Spaces in the News - New York's Pix11 / Wpix-Tv
  • Fighting rubber ruler measurements
  • Manhattan's Low-Rent Dining in Hiding
  • The NY Fed Is Buying Its Own Building