New York City Real Estate News Archive

JAN 2019
January 2019: New York Real Estate Market Report

Despite strong office demand from Technology and Co-working/shared offices, new office construction was stronger and net space available increased by almost 4 million square feet.

Retail: New demand is coming from online retailers such as Casper and Warby Parker who need physical stores for consumers to try and buy their products. Retail prices continue to fall but at a much slower rate than in previous years.

Building Sales: Expect cap rates to rise as interest rates rise from the Federal reserve.
DEC 2018
December 2018: New York Real Estate Market Report

Manhattan Office:
Amazon coming to Long Island City and bringing 25,000 jobs which will increase office demand. Google and Facebook are also on the hunt for additional office space. New construction came online and vacancies fell slightly. The co-working/shared/executive offices are also on an expansion hunt so new office supply should be readily absorbed.

Manhattan Retail:
Retail continues to be quiet with main activity being renewals of existing tenants. Only a few nationals are expanding in New York City, Target. Prices still need to fall so that spaces will rent. The big question is when.

Building Sales:
Higher interest rates have had more of an affect on residential than commercial, although the question remains when will rates drive cap rates and therefore sales prices lower.
NOV 2018
November 2018: New York Real Estate Market Report
OCT 2018
October 2018: New York Real Estate Market Report

Manhattan Office

New construction and buildings being re-purposed from department stores and industrial to office use contributed to more available office space despite strong office demand. Total Manhattan Office Market vacancy increased from 36.46 million RSF to 37.14 million RSF. The biggest new use group is Flexible office space with a multitude of new providers and existing players expanding their footprint.

Manhattan Retail
Manhattan Retail continues to get worse. Not only are vacancy rates up but many of the leases signed are temporary, so the true vacancy figures are higher than stated. This will lead to pressure for landlords to lower retail rental prices.
SEP 2018
September 2018: New York Real Estate Market Report

Manhattan's office vacancy budget is up a little but given strong office leasing deliveries that is an impressive statistic, showing the strength of the office market.
Retail leasing was slower than usual with leasing down from the previous month due to a large lease from Toyota.

Manhattan Building Sales:
Manhattan investment sales retreated in June, with just over $2 billion recorded. The figure was a steep decline from May’s $3.6 billion, but was right on the average of the past year.
AUG 2018
August 2018: New York Real Estate Market Report

Manhattan Office
Demand for Manhattan office space was strong but with new office construction coming online there was negative absorption of 3.57 Million RSF. More than 16.7 million RSF is under or about to start construction putting pressure on Landlords to sweeten office deals with extra work or cut prices. ..

Manhattan Retail:
Landlords have lowered retail rents all over Manhattan. The average price of ground-floor retail dropped by 19.5% in 13 of the 16 shopping districts in the first quarter of the year. The one exception was Times Square where rents were slightly up to $1,993.
Fifth Avenue around the Plaza Hotel saw retail rents drop by 13.5% from the first quarter to the second quarter this year.

Building Sales:
Manhattan investment sales saw a sharp increase in dollar volume during the first half of 2018 thanks to an uptick in big-ticket deals, notably Google’s roughly $2.4 billion purchase of Chelsea Market. There were more large-scale deals in the first half of this year than last year, with 15 transactions going for more than $100 million compared to nine in 2017.
JUL 2018
July 2018: New York Real Estate Market Report

Manhattan Office
Demand for Manhattan office space was robust last month and ahead of 2018’s leasing total this point last year. Manhattan recorded 4.17 million square feet of new leases and renewals last month, almost 83% higher than in May of last year.

Manhattan Retail
The 10 biggest retail lease deals signed last month totaled just over 165,000 square feet, well below last month’s total of over 310,000 square feet.
JUN 2018
June 2018: New York Real Estate Market Report

Manhattan Office
Manhattan office leasing activity was up, but so were rental concessions, as future office deliveries are coming fast and furious.

Manhattan Retail
Retail prices continue to cool. Economics of internet delivery are continuing to erode retail demand and what tenants are prepared to pay.
MAY 2018
May 2018: New York Real Estate Market Report

Manhattan Office
Rental concessions rise as new office space is being delivered that surpasses demand. 5 Million square feet are being delivered this year and more the following year.

Manhattan Retail
Retail prices are off 20% from last year. This year prices are expected to be flat, as more retailers re-enter the market and pricing is more affordable
APR 2018
April 2018: New York Real Estate Market Report

Manhattan Office
Manhattan office demand got off to a slow start this year. However, the market is tightening as JP Morgan Chase started signing new leases to replace their existing headquarters of 1,500,000 that they are planning to demolish and rebuild.

Manhattan Retail
Retail leases are getting signed now that retail rents have come down substantially. Continue to see more leases being signed now that they are economical.
MAR 2018
March 2018: New York Real Estate Market Report

Manhattan Office:
Manhattan office market facing some headwinds despite strong leasing demand, as 12.6 million square feet of office space is to be delivered in the next 24 months.

Manhattan Retail:
Retail leases continue to be signed as landlords adjust their rents to make leases economic for tenants.
FEB 2018
February 2018: New York Real Estate Market Report

New York Office:
Strong office demand pushes vacancy rates down, while office rental rates remain flat. Companies are flocking to New Construction in Hudson Yards leasing 8.3 million square feet there and Manhattan West. Leaving behind about 7 million square feet.

New York Retail:
With retail rents down 18-20%, retailers have resumed signing leases and the market is beginning to tighten in prime neighborhoods.
JAN 2018
January 2018: New York Real Estate Market Report

New York Office:
Despite strong office demand, new office construction deliveries increased vacancies by 500,000 RSF.

New York Retail:
Manhattan landlords have lowered prices enough that tenants are signing leases. Prices are 30% off the peak rents in Times Square and Soho. Non- prime retail prices are down 50% from peak.
DEC 2017
December 2017: New York Real Estate Market Report

Manhattan Office.

Office leasing demand is strong with net positive absorption in Downtown and Midtown. Office rental concession rise as landlords compete with fancier build-outs rather than cutting asking rents. Midtown South saw vacancies rise both direct and sublease.

Manhattan Retail.

With more than 200 stores vacant, landlords have been and continue to cut rental prices to attract new tenants. Retail rents are down 34% from the peak in 2014.
NOV 2017
November 2017: New York Real Estate Market Report

Manhattan Office:
Manhattan office vacancies increased despite a strong leasing market as more new office construction comes online in Hudson Yards and Downtown. Office prices have declined and will continue to do so slightly, as increased supply continues to rise once buildings are completed.

Manhattan Retail:
Manhattan retail prices have fallen 23% from the peak, as tenants refuse to sign leases that do not make economic sense. The question is have retail rents fallen enough?
OCT 2017
October 2017: New York Real Estate Market Report

Manhattan Office
Office demand was strong in Downtown and Midtown Manhattan with vacancies declining in excess of 800,000 SF. Only in Midtown South did vacancies increase. Most likely due to new inventory in the Hudson Yards coming online.

Manhattan Retail
Retail vacancies continued to increase. Manhattan landlords are continuing to decrease their prices until a new equilibrium is found.
SEP 2017
September 2017: New York Real Estate Market Report

New York Office Market Overview.

Manhattan Office:
Despite strong office demand, vacancy increased in Downtown, Midtown South and Midtown as new office developments came on the market faster than office demand.

Manhattan Retail:
Landlords continue to cut rents as retailer’s balk at the historically high rental prices. Retail rents will likely continue their downward trend.
AUG 2017
August 2017: New York Real Estate Market Report

Manhattan Office:
Strong office demand created positive absorption in Midtown, Midtown South and Downtown. Businesses are making commitments despite the turbulence of the Trump presidency.

Manhattan Retail:
Stronger demand for retail downtown and Midtown South resulted in slightly less vacancy. Retail vacancy in Midtown increased as retail prices have not yet fallen enough for retailers to re-enter the market and be profitable.
JUL 2017
July 2017: New York Real Estate Market Report

Manhattan Office:
Available direct Manhattan office space declined in all 3 office markets. Subleases for Manhattan offices increased slightly in Midtown and Downtown.

Manhattan Retail:
Available Manhattan Retail space that was listed was down last month. This seems counter intuitive given how many storefronts remain vacant. Two possible theories: 1. Landlords have pulled spaces off the market or 2. Prices have come down enough that leases are getting done.
JUN 2017
June 2017: New York Real Estate Market Report

Manhattan Office: Manhattan office direct vacancies declined in all sub-markets. Manhattan office sublease increased as more firms shed extra office space. Overall, the market is stable but landlords are continuing to increase concessions while trying to hold firm on pricing. ...

Manhattan Retail: National retail closures continue to take their toll on the New York retail landscape putting additional pressure on landlords to lower pricing or increase incentives. This trend is likely to continue...
MAY 2017
May 2017: New York Real Estate Market Report

Manhattan Office:
Manhattan office leasing activity has been relatively slow. A handful of large renewals helped push the Manhattan market over 1 million square feet of space in the past 30 days... .

Manhattan Retail:
Storefronts across Manhattan continue to close, with nearly a 25% increase in the number of available spaces than three months prior. The increase in availability will continue to put pressure on asking rents....
APR 2017
April 2017: New York Real Estate Market Report

Manhattan Office:
The Manhattan office market is strong with leasing activity nearly 40% higher year-over- year.

Leasing activity in Midtown was driven by two large deals at 1211 Sixth Avenue, where 21st Century Fox America took 767,885 square feet, and News Corp. took another 443,586.

Manhattan Retail:
Facing rising retail vacancies, Manhattan landlords are offering increased concessions rather than reducing asking rents. Incentives include paying for renovations and moving expenses…..
MAR 2017
March 2017: New York Real Estate Market Report

Manhattan Office:
Manhattan Office leasing started off strong in January with 4.5 million square feet of leases signed, an increase of around 70% from January last year....

Manhattan Retail: Retail landlords are dropping asking rents along Third Avenue as much as 44% off of high asking rents. National chains continue to close stores and banks downsize location sizes which continue to suppress demand and increase supply...
FEB 2017
February 2017: New York Real Estate Market Report

Manhattan Office:
Manhattan office leasing picked up pace after the US election and companies went back to business. Prices remain firm while concession packages continue to increase marginally. News Corp. and Fox rented a combined 1.2M SF at 1211 Avenue of the Americas.

Manhattan Retail:
Manhattan Retail vacancies increased as stores claused due to rising landlord's rent aspirations. With Banks reducing their retail footprints and online retail causing reduced street sales, retail is likely to continue to suffer and retail prices will continue to fall.
JAN 2017
January 2017: New York Real Estate Market Report

Manhattan Office:
Manhattan office market slowed as Tenants await new fiscal policies from President Trump. Millions of square feet are coming on the market which will push prices down in older office stock.

Manhattan Retail:
Manhattan retail prices in non-prime areas are falling, as retailers ask if leases are economical and there is more online competition.
DEC 2016
December 2016: New York Real Estate Market Report

Manhattan Office:
Office pricing remains constant but free rent and work allowances are becoming more liberal in select markets.

Manhattan Retail:
Retail rents continue to decline as retailers insist that leases make economic sense.....
NOV 2016
November 2016: New York Real Estate Market Report

Manhattan office: Vacancies inched up as new construction comes online to a slower leasing market. If trend continues, office prices should start to fall.

Manhattan retail: Retail vacancies increased slightly in all markets as spaces come online from new construction. Prices appear to have stabilized but may continue to fall long term, as online retailing takes a larger % of sales.
OCT 2016
October 2016: New York Real Estate Market Report

Manhattan Office:
Manhattan had negative absorption of office space, resulting from many new office buildings coming online and a relatively slow leasing period. The availability rate also rose slightly to 11.2% from 10.6%.

Manhattan Retail:
The Manhattan retail market is experiencing a sudden burst in store leasing. Manhattan retailers inked 1,027 deals for a total of 2.9 million square feet...
SEP 2016
September 2016: New York Real Estate Market Report

Manhattan Office: New office construction and quiet leasing environment bodes well for tenants as they get more rental concessions....

Manhattan Retail: World Trade Center finally opens, although more than 40 out of 100 retailers have yet to open or occupy their stores...
AUG 2016
August 2016: New York Real Estate Market Report

Manhattan Office: Slower Manhattan Office leasing volumes are causing landlords to increase concessions for free rent and work rather than cut asking rental prices.

Manhattan Retail: Manhattan Retail rents have stopped increasing and many retailers are holding off as sales are down due to the recent appreciation in the US dollar.
JUL 2016
July 2016: New York 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.
JUN 2016
June 2016: New York Real Estate Market Report

NYC Office: Upcoming elections and Brexit are additional concerns for the New York City office market. Leasing has been lighter than usual with landlords reaching to make deals.
NYC Retail: Space sizes are growing past actual as landlords try to hide rental rate hikes. Retail rents continue to fall in off prime locations, as retailers balk at the new asking rents.
MAY 2016
May 2016: New York Real Estate Market Report

Office Overview Net effective Manhattan office rents continue to fall as Landlords add additional work concessions for tenants moving or renewing. Projected year's rent for the coming year predicts a decline in effective rents. Manhattan office leasing continues to show steady volume for leases between $80 to $100 per square foot, while leasing volume above $100 per square foot has slowed. Retail. Manhattan Retail rents continue to fall as retailers wait for reduced rents. 2,500 retail locations are closing nationwide, including all Scoop locations in NYC.
APR 2016
April 2016: New York Real Estate Market Report

Manhattan Office: Manhattan leasing market is brisk but pace of new construction is outpacing demand and rents are falling in older office buildings in Midtown. Retail Leasing: Retail prices in less desirable neighborhoods continue to fall. Prices will continue downwards until retail rents are deemed affordable by retailers.
MAR 2016
March 2016: New York Real Estate Market Report

The Stock market's steep losses last month made companies leary of making major decisions.
This caution affected both the office and retail rental markets as leasing volumes were quiet.

This month, the US stock market regained most of the losses from the previous month, and we expect normal leasing volumes in both office and retail to occur.
FEB 2016
February 2016: New York Real Estate Market Report

Manhattan Office
Manhattan office vacancy crept up marginally, as new office construction gets delivered a little faster than space can be absorbed.

Manhattan Retail
Fifth Avenue retail leases deals are back on. Coach just signed a lease at 685 Fifth Avenue for 23,400 square and Adidas signed a 15-year lease for 34,000-square-foot ground-floor space at 565 Fifth Avenue.
JAN 2016
January 2016: New York Real Estate Market Report

2016 is starting off with record Office and Retail rental rates in the premium buildings and locations in Manhattan. Record Retail rents in excess of $5,000 per square foot were achieved with the $16 million per annum lease for Bulgari at 730 Fifth Avenue. Meanwhile, retail rents 10 blocks away can be 50 times less. Record office rents of $300/RSF were reported with the Citadel lease at 425 Park Avenue. .....
DEC 2015
December 2015: New York Real Estate Market Report

Office
Even with a number of major office buildings under construction, vacancy rates went up only slightly meaning office demand remains strong.

Retail
A number of major new Fifth Avenue retail leases were announced.
Meanwhile, in secondary retail markets prices continue to decline as Tenants still wait for better deals.
NOV 2015
November 2015: New York Real Estate Market Report

Office
Manhattan Office space vacancies increased as new office construction progresses and office tenants are now considering Brooklyn offices desirable. Meanwhile, conversions and demolitions from office use to Condo and Hotel continue unabated.

Retail
Manhattan Retail leasing has been quiet as tenants balk at paying the new normal prices. More retail vacancies and longer vacant durations are causing Manhattan retail prices to drop. One can see this trend in Soho where a broker says reduced price 50% of last year’s rental rate.....
OCT 2015
October 2015: New York Real Estate Market Report

The prime New York Retail market is dead as tenants hold off to Landlord’s demands for record rents. Retail demand is strong in up-and-coming areas.

New York office leasing volume was nearly half the previous month's rate of 4 million square feet. Large lease signings are down year to date, though the number of office workers has been rising.
SEP 2015
September 2015: New York Real Estate Market Report

Manhattan Office: Manhattan office construction is at its highest level in 25 years, with 19 buildings containing 9.7 million square feet under construction by end of next year and 4.3 million square feet of new office construction this year. Even with all this new construction, Manhattan Office vacancy only went up slightly... Manhattan Retail: Retail pricing in Manhattan remains overly optimistic with relatively little new supply and tepid demand due to increased retail prices. Over time, retail prices should moderate until vacancies are absorbed. ...
AUG 2015
August 2015: New York Real Estate Market Report

Manhattan Office: Strong demand for Manhattan Class A office space caused vacancies to decrease month over month. Meanwhile, Class B and C office space vacancies increased slightly as prices were recently increased. Manhattan Retail: Continued strong demand for Manhattan retail pushed vacancies down, despite rising prices....
JUL 2015
July 2015: New York Real Estate Market Report

Manhattan Office: Manhattan office vacancies only increased by 400,000 RSF despite 11,652,00 RSF of new office construction underway in Hudson Yards and World Trade Center. New office rents in excess of $100/RSF will cause upward pricing increases in Class B and Class C office stock. Manhattan Retail: Total available vacant space decreased slightly. Rental activity remains brisk with prices near all time highs. Question is who are these tenants who can afford to pay these rents and still operate at a profit?
JUN 2015
June 2015: New York Real Estate Market Report

Office Manhattan Office vacancies declined in all markets except Midtown South. Subleases increased nominally due to strong office leasing activity. Retail New York Retail vacancies declined in all markets due to strong retail leasing activity.
MAY 2015
May 2015: New York Real Estate Market Report

Downtown office prices are rising due to the influx of TAMI tenants and continued conversions of office to Hotel and Residential use.

Midtown South remains extremely tight with the new construction, 100 % rented at 51 Astor Place.

Retail:
Retail Market remains strong with both National and International retailers opening additional locations in Manhattan.
APR 2015
April 2015: New York Real Estate Market Report

New office construction that is coming onto the market, albeit at higher prices has caused vacancy rates to inch upwards. With continued cannibalization of the office stock, from office use to hotel or new residential construction, is putting upward pressure on Class B office stock.

Retail: Retail rents remain unabated with T mobile reported to have paid $2,000/SF in Times Square. These deals are causing Landlords to re-think their retail prices as being too low, while tenants say they cannot afford to pay those rents.
MAR 2015
March 2015: New York Real Estate Market Report

Strong Manhattan office demand resulted in 1.03 million RSF net absorption and decreased vacancies in all New York office markets, except Midtown South where a new building was recently completed. Manhattan retail leasing remains strong. Lower Manhattan retail is especially doing well with reopening of the Fulton Center subway hub. Major retailers are opening new locations nearby...
FEB 2015
February 2015: New York Real Estate Market Report

Manhattan Office
The Manhattan office market is much tighter than people realize. The existing Manhattan office stock has grown 12.33% over the past ten years without any new space being added. The full floor loss factor that Landlords apply to measure their office space has increased from 18% to 27% for a full floor over the past ten years. To make matters worse, Manhattan office buildings continue to be converted into residential or hotel use at a much faster pace than new office buildings are being built. For Example, 1 Wall Street a 1.1 Million Square foot office building and 180 Water Street, a 500,000 office building were announced to be converted into residential. The countervailing trend is that firms are being much more efficient with their allocation of office space per employee. Shared space and executive office suites such as WeWorks and Regus are now the norm. When major corporations move or re-stack, they are taking 30% less space.
Manhattan Retail.
Activity remains brisk as Manhattan tourism reached an all-time high of 56,000,000 visitors last year. With the opening of the Fulton Street transit station and the near completion of leasing for the Calatrava's designed World Trade Center Transportation hub, the Downtown retail market is going to bloom.
JAN 2015
January 2015: New York Real Estate Market Report

Manhattan Offices:
Manhattan office vacancies increased by almost 2 million square feet, as 1 World Trade Center opened and Conde Nast’s former space at 4 Times Square comes on the market. Also, almost 2 million square feet remains unspoken for at 3 World Trade Center. Additional office space will be added with the completion of 2 World Trade Center and two office buildings at Hudson Yards: 1 Manhattan West, 2,230,000 RSF and 3 Hudson Boulevard, 1,869,500 RSF.

Retail:
The 350,000 retail complex at World Trade Center is completely leased with fashion tenants and Eataly for the food component.
DEC 2014
December 2014: New York Real Estate Market Report

1 Wall Street (1.100,000 Square feet) is the latest large office building in Manhattan to be converted to residential. In the last few years, more than 10 million square feet of office/commercial space has been or is planned to be converted to residential or hotel use. This loss of office/commerical space in New York city is greater than the number of square feet created. As a result of constant office demand, with less office space supply, equals upward pressure on Manhattan office rents in the foreseeable future.
NOV 2014
November 2014: New York Real Estate Market Report

There was more new residential construction than commercial construction in New York. Commercial construction investment on pace to dip to $7.8 billion, rising residential spending of $10.9 billion from just $6.8 billion the previous year.

The Manhattan office market continued along an upward trend in the third quarter of 2014, as rising employment increased the number of office users in the borough.
OCT 2014
October 2014: New York Real Estate Market Report

New York Office Market Overview:
New York Office vacancies increased slightly in Midtown and Midtown South due to new construction at the Hudson Yards. As leases are signed at Hudson Yards, the firms relocating there are downsizing their amount of space they rent as they renting less office square feet per person. Downtown office vacancies continued to decline as demand remains robust.

New York Retail:
Prime New York retail is still red hot but Landlords are not achieving their lofty rents. As a result, prime retail locations remain vacant. If this trend continues, prime retail rents will decline. Non-prime retail locations demand remains soft and vacancies are increasing slightly.
SEP 2014
September 2014: New York Real Estate Market Report

Manhattan vacancies continue to decline with over a 1,340,000 RSF of net absorption last month. Developers are revisiting mothballed office building development sites. Vornado is reconsidering their plans to renovate the Hotel Pennsylvania and is now looking for office tenants for a proposed 3 million square foot development there.

Retail
Manhattan retail remains active, as foreign retailers continue to take additional locations and urgent care units continue to expand their footprint in New York City retail.
AUG 2014
August 2014: New York Real Estate Market Report

Manhattan commercial sales prices have reached all time highs. Prime development sites are asking $1,300/developable SF and prime Brooklyn sites are asking $400/per developable SF
Record high retail rents are also filling the record sales prices with prime 5th Avenue retail locations asking $3,500/SF and prime Times Square asking $2,500/SF
JUL 2014
July 2014: New York Real Estate Market Report

The Manhattan office and Manhattan retail markets are as hot as the temperature outside. There were declines in the amount of both office and retail spaces in all markets except for Midtown South. In Midtown South, a number of buildings previously off the market were added back to the available inventory of office space. New York is in desperate need of new office buildings. Buildings are planned and under construction but delivery dates are in the distant future. As a result office rents are rising!
JUN 2014
June 2014: New York Real Estate Market Report

Office Manhattan
Office leasing in Downtown Manhattan and Midtown South Manhattan remain strong with office vacancies continuing to decline.
Midtown Manhattan office remains soft with a small increase in available vacancies. Although, top office Plaza properties rents are near record high for office rents.

Retail Manhattan
Strong retail demand continues for top locations with pricing continuing at near record high levels. A recent lease on Union Square was an all time high for that neighborhood. Second tier retail locations pricing is coming down as landlords are tired of holding out for top dollar. Time and vacany cure landlords wish to hold out for top dollar rents.
MAY 2014
May 2014: New York Real Estate Market Report

Manhattan office, retail and high-end residential sales are red hot. These properties and obtaining record price per SF obtained both in sales prices and rental rates.

New York Residential developers are building as fast as they can to sell residential units at $2,000-10,000/SF and up.

Quality Manhattan Office and retail rents continue to rise in the best sub=markets. Sales prices of commercial properties are reflecting both the current rents and projected rents to justify the prices obtained.
APR 2014
April 2014: New York Real Estate Market Report

Tenants are giving more value to new construction, and as a result a number of new leases have been signed. Hence, new construction has risen dramatically, as seen in the rise of a number of new buildings.

Top quality retail is still in high demand as many foreign retailers enter the New York Market.
MAR 2014
March 2014: New York Real Estate Market Report

Office
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.

Retail.
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.
FEB 2014
February 2014: New York Real Estate Market Report

Over 80 leases were signed last year for more than $100/RSF. Meanwhile predictions from the city’s Economic Development Corporation show that Class B and C buildings will be full by 2018. This means that office rents will go higher.

Retail: Rents continue to rise as many prime sites are rented.

Residential. Qatar just spent $100,000,000 for a townhouse at 9 East 64th Street. The big question is how many buyers are out there for new expensive condominiums that are being built?
JAN 2014
January 2014: New York Real Estate Market Report

Office:
Citibank signed a billion dollar long-term lease renewal at 388-390 Greenwich Street. Otherwise, office rent was relatively quiet last month with rents unchanged.

Retail:
Retail rents continue to escalate in the prime markets. Retailers are now considering alternate locations where they can make profits with lower rents.

New Manhattan Developments:
Brookfield Property Partners has made a $5.1 billion dollar offer to buy Brookfield Properties. .....
DEC 2013
December 2013: New York Real Estate Market Report

Legal, medical and education were the major office Tenants in the Manhattan market. These sectors picked up the weak demand from Banks and Investment Firms. Retail remains strong, as the number of tourists coming to NY surpasses 51 million.
NOV 2013
November 2013: New York Real Estate Market Report

Madison Avenue retail rents reach record high with the Hermes lease at 691 Madison at $1,700/SF and pending leases at 680 Madison Avenue for $2,200/ SF.

Office vacancies continue to decline as existing commercial buildings are converted to residential and hotels with limited new commercial construction being completed. .....
OCT 2013
October 2013: New York Real Estate Market Report

Office vacancies increase throughout Manhattan, as several new office buildings are being built. These buildings include: 7 Bryant Park, developed by Hines and Pacolet Milkin, containing 474,000 square feet of Class A Office.

150 Greenwich developed by Silverstein, near completion and containing 1,034,969 RSF of Class A Office. Leasing for the tower has reached 50%.

Hudson Yard South Office Tower, developed by Related and Oxford Group, containing 1.7 million-square-foot with 3 large leases in place. This is the first building of a 26 acre development, containing 18 million square feet of new construction.

Other new construction planned include:

3 Hudson Blvd, developed by Moinian, planned to contain 1,869,500 SF.
400 W 33rd St - North Tower, developed by Brookfield planned to contain 2,052,864 SF.
SEP 2013
September 2013: New York Real Estate Market Report

TAMI (technology, advertising, media, and information) tenants accounted for over a quarter of the top ten leasing deals in the second quarter of 2013, continuing the previous trend.
AUG 2013
August 2013: New York Real Estate Market Report

TAMI (Technology Advertising, Media and Information) continue to expand their Manhattan offices sizes. Office vacancies remain tight until new office construction at Hudson Yards and World Trade Center Site are completed . Other new major construction projects includes the Columbia University Expansion in West Harlem and the Cornell Technion Universities new campus on Roosevelt Island.
JUL 2013
July 2013: New York Real Estate Market Report

A billion dollar sale in New York is not what it used to be. Six transactions valued over a billion dollars have recently been concluded or are being offered.
- 650 Madison Avenue is in contract for $1.3 billion. New owners see value in the property’s retail component as upside.
- RXR Realty has agreed to buy a 49 percent stake in 350 West 50th Street for around $660 million at a $1.35 billion valuation.
- The Chetrit Group acquired the Sony Building with a three-year leaseback for $1.1 billion.
- The GM building sold a 40% stake valuing the building at $3.4 billion .
- The Empire State Building received a $2 billion cash offer from Rubin Schron
JUN 2013
June 2013: New York Real Estate Market Report

Plaza District Class A office rents are back to 2008 highs. Two recent leases at the GM Boarding and 9 West 57th Street were at $200/RSF. There is a pocket in Midtown where rents have declined from their highs, this area is from 42nd to 47th Street Second Avenue to Sixth Avenue, where Tech and Media companies do not want to go to.

Prime retail rents on 5th Avenue, Madison Avenue and Times Square are at all time highs.
MAY 2013
May 2013: New York Real Estate Market Report

Coach, SAP and L’Oreal have agreed to occupy 80% of The South Tower in the Hudson Yards Development. When these companies relocate into their new ones, 1.5 million square feet of space will become available for other office tenants. Up until now, there has been limited amount of new office construction. The one exception to this is the buildings being developed at the World Trade Center site.

Retail leasing remains active thanks to foreign and national retailers continuing their Manhattan expansions.
APR 2013
April 2013: New York Real Estate Market Report

Grand Central has the best office deals for tenants looking for more than 10,000 RSF. There are more than 50 midtown buildings that have vacant blocks of office space of at least 100,000 RSF. Grand Central has twice the number of available large blocks of office space than Times Square.

Office demand is strong in Midtown South in locations such as: Flatiron; Chelsea; Soho and Tribeca. These are the locations keenly sought after by Technology, education, advertising and media firms.
MAR 2013
March 2013: New York Real Estate Market Report

Manhattan office vacancies increased in February. Companies who had temporary relocated from Sandy's damage have returned. New construction is underway and large corporations are taking less space upon relocation as they are being more efficient in their space planning. The result is increased vacancies over the next few years. Expansions in Education and Technology firms will help reduce the new supply of office space.
FEB 2013
February 2013: New York Real Estate Market Report

Manhattan Class A office vacancies decrease, as firms resume leasing after the resolution of the fiscal cliff. While financial service firms demand is weak, technology, education and bio-technology firms are actively leasing space.

Retail vacancies also declined. Fifth Avenue and Madison Avenue prices are at or near all time high prices.
JAN 2013
January 2013: New York Real Estate Market Report

Building sales in December were very active, as sellers rushed to close before Capital gains rate increased. Office leasing in December was slow as tenants awaited the Fiscal cliff resolution, took vacations and dealt with Hurricane Sandy recovery. Office demand in the New Year should be stronger as the fiscal cliff has been resolved and as the economy slowly continues to mend.
DEC 2012
December 2012: New York Real Estate Market Report

Manhattan office vacancies increased marginally, despite Hurricane Sandy causing more than 10 million square feet of office space to be temporarily removed from the market. Prime retail continues to appreciate in asking price as few availabilities exist...
NOV 2012
November 2012: New York Real Estate Market Report

The pending federal election slowed down rental activity while companies waited to see the outcome. Now Hurricane Sandy has put a crimp on rental, as firms regroup while awaiting power and recovery from water damage. There is still limited power below 39th Street and east of 6th Avenue. The outage affects some 200 million square feet of residential, commercial and industrial properties.
OCT 2012
October 2012: New York Real Estate Market Report

Despite rising vacancies in the Plaza District, office rental rates of Class A offices hold steady. Financial firms have been adding space to the sublease market and downsizing....
SEP 2012
September 2012: New York Real Estate Market Report

Landlords are giving increased Free Rent and Base Landlord work as Manhattan Office vacancies continue to increase both direct space and sublease.

Retail demand remains strong and vacancies decline as both International and National retailers enter the market or expand
AUG 2012
August 2012: New York Real Estate Market Report

The City of New York rented almost 600,000 SF of Office space in July, otherwise few transactions occurred. With Tower 3, Tower 4 and One World Trade Center coming online in the next two years, vacancies are likely to increase putting pressure on Class A office pricing. Retail continues to be hot as international retailers and national retailers enter the New York market....
JUL 2012
July 2012: New York Real Estate Market Report

Large new retail leases for (Nordstrom, Burlington Coat Factory and Express) and Office renewals for Morgan Stanley and Citigroup were announced in June. Meanwhile a bankruptcy for Dewey & LeBoeuf and a few large subleases are on the market, increasing vacancies in available office space. Prices remain relatively firm for Class A office space, as technology and education expanded........
JUN 2012
June 2012: New York Real Estate Market Report

Dewey & LeBoeuf went bankrupt putting 500,000 sf of class A space back into the Midtown office market. Financial and Law firms remain cautious as the Euro and US Stock markets are volatile. Luckily for the New York office market and residential market Technology, Education and creative firms are expanding. Retail continues to be active as and national and foreign retailers expand into New York.
MAY 2012
May 2012: New York Real Estate Market Report

Two large leases kept the quarter out of the doldrums. Viacom, signed a 15-year renewal and expansion through 2031 which will ultimately give the company the entire 1.6 million-square-feet office portion at 1515 Broadway. Morgan Stanley signed the other major lease renewal-and-expansion at 1 New York Plaza for 1.1 million square feet.

These two deals significantly helped a slow three-month rental period in Manhattan which was still 1.2 million square feet less than normal for the quarter.

Small leases 1,000-5,000 RSF were very active. While Mid-size 6,000-50,000 RSF tenants remain cautious.
APR 2012
April 2012: New York Real Estate Market Report

Last month's Manhattan office leasing volume was not even 25% of last years. Leasing volumes, to date, annualized for 2012 are about ½ of what they were in 2011. Incentives such as naming rights, terraces and bring your dog to work are now being offered by landlords to get tenants interested...
MAR 2012
March 2012: New York Real Estate Market Report

Tenants are continuing to be slow in making long term decisions, therefore leasing volumes have been quiet for the last few quarters. 6 million square feet of new office inventory wil be coming online this year. This will lead to interesting game of blink as to whether Landlords will lower their rents in order to get deals done.
FEB 2012
February 2012: New York Real Estate Market Report

Office building Developers were overly optimistic that they were going to sign millions of square feet of leases with New York corporations looking to consolidate. With the economy in flux, it is yet to happen.

The city’s low office vacancy rates and slowly rising rents are overshadowing a disturbing office leasing trend. Ground-up office projects have been unable to secure major tenants, which in turn have stifled development. News that Silverstein Properties might cap off 3 World Trade Center at seven stories because of its inability to land a tenant, is just the most recent example. Three World Trade Center is close to being topped off — 73 stories shorter than initially planned. Crain’s reported that if developer Larry Silverstein, president of Silverstein Properties, cannot find an office tenant for the planned 80-story tower by the end of the year, he’ll cap it off at seven stories and seek retail tenants to fill the structure. After talks with UBS broke off Silverstein has not come close to finding a tenant, Silverstein will resume construction as planned on 3 WTC with slight delays to the expected 2015 completion date

There are a limited number of tenants who will pay more than $100/RSF in today’s economic environment. While certain high-profile leases in 2011 might have made it seem as though office leasing had recovered fully. For instance, Kohlberg Kravis Roberts & Company signed a 64,000-square-foot lease at $147 per square foot for space at 9 West 57th. But in the third and fourth quarters office leasing numbers faltered. The message that the $100 deals are back is true, to a point "There are more deals than in 2010 or 2009, but it is still a 40 percent drop from the peak."
JAN 2012
January 2012: New York Real Estate Market Report

Predictions for Manhattan Real Estate - Year 2012

Retail
Prime retail rents will continue to rise but not as dramatic as previous years. Fringe retail rents will continue to fall 10-20%.

Office Space
Class A office rents depend upon the financial success of Banking and Investment Banks. It's a seesaw, if more layoffs, then rents in Class A Office Buildings could fall 10-20%. If neutral to hiring of employees, prices will continue to rise until it is economically viable to build new office buildings (which needs to be about $100/RSF rent).

Class B office rents will continue to rise because some Class B Office buildings are being converted to residential and hotels (therefore less inventory of Class B buildings).
DEC 2011
December 2011: New York Real Estate Market Report

Office rental volume tapered off from a strong start at the beginning of the year. This coincided with the recent market gyrations since August. Companies are starting to delay decisions until the stock market volatility lessens.

Prime retail property is full while secondary locations languish.

New Residential construction has restarted. Banks are now lending to experienced, well financed developers. As a result, the number of stalled projects has declined 8% from the previous year.
NOV 2011
November 2011: New York Real Estate Market Report

We have been talking about pending new construction for the last few newsletters. Now it has finally happened. Coach is buying a new building to be constructed as part of Related development on the West Side. Brookfield is also about to start constructing the $300 million deck above the rail tracks. This will dramatically change the neighborhood from fringe to potentially the next Rockefeller Center on the West Side.
OCT 2011
October 2011: New York Real Estate Market Report

Two trends have occurred this month. The 1st is the stock market has been fluctuating widely. The 2nd is office vacancies have started to increase in Midtown and Downtown though office rents have yet to decline. A number of high profile retail locations remain vacant as landlords continue to hold out for preferred tenants while secondary locations languish.
SEP 2011
September 2011: New York Real Estate Market Report

New construction for both office building and residential is occurring in Manhattan.

European and other foreign retailers continue to enter the Manhattan market and are outbidding American retailers.
AUG 2011
August 2011: New York Real Estate Market Report

Midtown office demand and rents are rising to the point that justifies new office construction. This is due to financial firms relocating to Midtown.
JUL 2011
July 2011: New York Real Estate Market Report

There was a lot of lateral movement in the Manhattan office market but no net absorption. Conde Nast signed a lease for 1,000,000 SF at 1 World Trade Center but will vacate an equivalent amount. Nomura Securities signed a lease for 800,000 SF at 825 Eighth Avenue vacating World Financial Center but again a lateral movement.
JUN 2011
June 2011: New York Real Estate Market Report

New construction about to start again in Midtown. Banks are funding as Midtown office rents exceed $100/RSF … Boston Properties will be the first to construct a $1.05 billion, one million-square-foot office with their anchor tenant Morrison & Foerster at 250 West 55th Street.
MAY 2011
May 2011: New York Real Estate Market Report

Quality office buildings in Midtown and Midtown South are attracting multiple offers. Landlords are taking advantage of this trend and are raising their asking prices on their A and B office buildings.
APR 2011
April 2011: New York Real Estate Market Report

With the economy starting to grow and employment picking up, large and medium size businesses are finally signing long-term office leases, in record numbers.....
MAR 2011
March 2011: New York Real Estate Market Report

Is the economy really improving? Warren Buffet believes so. So do the 29 large financial firms. They are all vying for the 24 large blocks spaces of 200,000 SF that exist. Other than that, the market is flat
FEB 2011
February 2011: New York Real Estate Market Report

Downsizing has come to a halt. Companies are hunkering down as wall street, hedge funds and technology firms are back to business as usual.
This means that Manhattan office and retail vacancies will decline over time, as the economy improves.
JAN 2011
January 2011: New York Real Estate Market Report

Three major trends as we start 2011
1. Foreign money is looking to buy Manhattan office and residential buildings by paying prices beyond those that make economic sense for domestic buyers.
2. Retail Landlords are actively seeking pop up stores to replace failed retailers. Landlords are still not willing to negotiate with struggling retailers.
3. The Manhattan Office market is a tale of two cities. Wall Street and Law firms have gone from net firing to net hiring. These two employer categories are economic engines for Manhattan and consumers of Class A office space. The other side is N.Y. State and N.Y. City governments that are shrinking and existing N.Y. firms are down- sizing on renewals. The net result is a continued slight tightening on the Manhattan office market over the next year.
DEC 2010
December 2010: New York Real Estate Market Report

Office vacancies decreased in all three markets in Manhattan.

Midtown, Midtown South and Downtown have seen companies lock in leases both large and small. Many companies waited as long as they could and had to sign leases, while others tried to time the bottom.

Now the question is, what else is there? Some say there is some hiring on Wall Street, but then again some firms are still laying off. New York City is doing layoffs and so is New York State. The job market remains bleak in Manhattan. Office demand remains flat for the time being.
NOV 2010
November 2010: New York Real Estate Market Report

Distressed real estate is here to stay for the next 12 to 24 months. Multiple panels of real estate experts concurred with this at a recently held distressed real estate conference in New York.

The number of distressed properties entering the system is expected to rise as mortgages come due and there is limited ability to refinance. There are some $1.4 trillion dollars of commercial real estate mortgages coming due and only about $200 million dollars of available financing sources. What happens to the rest is anyone guess!

Certain markets will heal faster than others. New York is leading the market in terms of leasing velocity. The ultimate return to normalcy is dependent on employment and liquidity. Both at this time are illusive and layoffs in financial services are underway yet again.
OCT 2010
October 2010: New York Real Estate Market Report

Major corporations are continuing to try to lock in historically low rental rates while they can. This accounts for the on going strong rental volume. The strong rental volume, has Landlords talking about raising base rental rates. One landlord has actually taken the plunge. SL Green, a major Midtown Landlord, has announced such a price increase.
SEP 2010
September 2010: New York Real Estate Market Report

New York is holding its own as city appeals both to start ups and foreigner businesses. Retail Flagship activity has picked up dramatically as major retailers are vying for spaces on Madison and Fifth Avenue. There are many new foreign entrants coming into New York looking for small spaces. There are still many large vacancies out there where landlords have yet to take the plunge and divide up the spaces. Office Why are vacancy rates not climbing if firms are taking smaller spaces upon renewing their leases? While velocity is up, few firms are expanding.
AUG 2010
August 2010: New York Real Estate Market Report

Retail activity is brisk as retailers finally take the plunge and commit to new spaces albeit at recent record low prices, especially in high end retail markets. The same came be said about Class A Plaza district office. The rest of the Office and retail Market remain stagnant. Office vacancies continue to climb slowly as corporations renewing leases are taking less space than previously. Landlord optimism from increased leasing activity is causing rental prices to firm and rise in selected Class A office markets in Midtown.
JUL 2010
July 2010: New York Real Estate Market Report

Leasing volume spikes, as firms lock in low rents. Office vacancy increases, as most firms are taking smaller spaces. Landlords are encouraged by the strong uptick in leasing volumes and are starting to think about raising prices or lowering concessions.
JUN 2010
June 2010: New York Real Estate Market Report

I just returned from the International Council of Shopping Centers Convention in Las Vegas. The big surprise is how dramatically improved the attitude is compared to a year ago when all was lost. Attendance was up over previous years. People were looking to buy distressed debt, only to find out it is still not readily available.

A Panel discussion on banking said many more community banks will fail as their Texas Ratio ( Non-performing assets + 90 day delinquent debt divided by their capital) is great than one, and a major money center bank Texas Ratio is 50%. Bankers are now back making conservative loans on existing properties and funding is still limited for new construction. With all this said, retailers are now more optimistic and are back expanding, as prices and concessions are the best they have been in years as there have been significant employment gains from the depths of the depression.
MAY 2010
May 2010: New York Real Estate Market Report

The best lease deals are being done now.
Manhattan Office and Retail rents are at the bottom.
Landlords are still offering generous concession packages to close leases, especially for larger users. This will not last.
APR 2010
April 2010: New York Real Estate Market Report

This month has been a big yawn, in that while leasing volumes have increased it is due primarily to lease renewals that are shrinking and as such prices continue to moderate.
MAR 2010
March 2010: New York Real Estate Market Report

Landlords are being very aggressive to retain stable existing tenants, once the tenants have shown they are serious about moving. Tenants have also realized the need for a Tenant broker in these negotiations.

The dollar volume of office condominium sales in Manhattan slipped by nearly a third last year to its lowest level since 2005. The value of condos sold fell to $158 million in 2009, the weakest year since 2005 when just $49 million sold. The volume in 2008 was $233 million. The total amount of square feet sold fell by 42 percent to 220,000 last year from over 379,000 in 2008. As of the end of 2009, there were 8.2 million square feet of commercial condos in 76 buildings. The decline was representative of the broader sales market. The drop, however, was not as steep as the overall 72 percent fall in Manhattan building sales volume last year.

Residential Rents in New York City and Northern New Jersey saw their smallest annual increase since 1994, climbing just 1.6 percent between January 2010 and the same month a year earlier. Meanwhile, the unemployment rate was at 10 percent in the area over the same time period. Housing costs in the region have ramped up more rapidly than other living expenses for the last quarter century. Since the early 1980s, housing costs have increased by more than 300 percent, compared to food expenses which rose 125 percent and clothing, which rose less than 20 percent. Household energies on the other hand have decreased by 1.6 percent over the same time period.
FEB 2010
February 2010: New York Real Estate Market Report

Industry executives believe that we are at or near the bottom. The market 12 months ago felt like there was no bottom. Large building sales are starting to get done as sellers acknowledge the new market price. Loans are getting done although at substantially lower debt levels and at more stringent terms. There is still an overhang of zombie residential and commercial buildings where ownership does not have the money to fund build-outs and/or the properties owners have yet to cede ownership to the banks.

The amount of long-term sublease space from the financial service firms is being reduced which means that prices of office space will rise and or concessions will start to abate, as motivated sellers are removed from the market.

Retail will remain in a difficult period until people return to the stores and start buying. Retail prices should continue to moderately(fall) over the next 12 months. This is due to the operating struggling stores closing as they are not generating enough money to stay open and inventory increases.

Food for thought:

Will banks stop pretending and extending and take the losses now that they are profitable?
What will happen to the residential shadow inventory of zombie buildings?
What will happen to the former Goldman Sachs, AIG and Meryl Lynch space downtown?
Will there be more space added as firms restack buildings to consolidate their space holdings?
JAN 2010
January 2010: New York Real Estate Market Report

Long-term leases are now being signed by major corporations, as rents are being discounted 30% to 50% off the all time highs.

This is not true for smaller tenants, as downsizing has increased demand and there is less small office space in the market due to building conversions and former building repositioning for larger tenants.

There were extraordinary amounts of pop up (temporary) stores this holiday season, which means fewer long-term leases were being executed.
DEC 2009
December 2009: New York Real Estate Market Report

Over the past 30 days, retail vacancies have increased 18.67 % and office vacancies have increased 1.36%, this should trigger rents to continue to fall and landlord concessions to increase.
NOV 2009
November 2009: New York Real Estate Market Report

Manhattan leasing activity picks up for both Retail and Office.

Additional 500,000 RSF of office vacancies came on the market last month, but Tenants are snapping up office and retail spaces as rents are near a bottom and business prospects are more stable.
OCT 2009
October 2009: New York Real Estate Market Report

Manhattan office and retail markets have a Pulse!! Tenants are getting substantially lower rents and more favorable lease terms as landlords reach to make deals.
SEP 2009
September 2009: New York Real Estate Market Report

Activity has picked up in small and medium sized office and retail leases. Major corporations (Tenants) are still taking a wait and see attitude over the next few months until a clearer picture emerges on the economy before entering into long term leases. There still exists a large overhang of shadow office and retail space (space available but not listed as vacant), therefore there is a lot more vacant than the vacancy figures indicate.
AUG 2009
August 2009: New York Real Estate Market Report

The lowest rents in 13 years have caused office and retail tenants to enter back into the market and execute leases.
JUL 2009
July 2009: New York Real Estate Market Report

Manhattan commercial vacancy rate hits 13-year high.

While commercial leasing activity has picked up in the past few months, the city's Class A vacancy rate increased and average rents fell last month. The vacancy rate of Class A space in Manhattan reached 11.9 % in May, up from 11.3 % in April.
JUN 2009
June 2009: New York Real Estate Market Report

The New York City Office and Retail rental markets remains quiet though bargains abound. Great office space on Park Avenue that last year was $125-175 a square foot can now be rented for $60/SF asking. Same is true in retail where rental rates in many markets are 40-60% less than a year ago.
MAY 2009
May 2009: New York Real Estate Market Report

Leasing activity grinds to a near halt. The Midtown Class A vacancy rate is 12.2 percent since April of this year, the highest rate since August 1996. There is 7.8 million square feet of sublease space available in Class A buildings, the most since they started keeping records in 1991.
APR 2009
April 2009: New York Real Estate Market Report

Office and retail leasing activities have dropped to new lows. Managing agents and landlords are now devoting a large percentage of their time working with existing tenants who are looking to downsize or renegotiate their rents. Last quarter, there was nearly 4 million square feet of negative absorption. Pending moves by Merrill Lynch and AIG, millions of additional feet of office space will be dumped back on the market.
MAR 2009
March 2009: New York Real Estate Market Report

Office rents are off 30% from their all time highs and will continue to fall as Securities firms and banks may give up to 8 million square feet of office space in Manhattan this year. JPMorgan Chase, Citigroup and Lehman Brothers have already vacated 6.4 million feet of city office space, and Merrill Lynch is likely to give up another 5 million square feet and Smith Barney millions more feet. The available office space may reach 15.5% by the end of 2009, and the New York office market may not improve until the end of 2012.
FEB 2009
February 2009: New York Real Estate Market Report

At a recent real estate conference, Vornado said that retail and high end office rents are having a negotiable factor of between 25 and 50% of asking prices.

In addition, SL Green said that office rents are projected to be down 25%. What this means to office and retail tenants is that there are deals/bargains to be had from motivated Landlords, provided that you are guided by an expert to help you get all these concessions.
JAN 2009
January 2009: New York Real Estate Market Report

Building Sales grinded to a virtual halt with only two sales over $50 million.

Office leasing was light as major corporations are taking a wait and see attitude as rents are expected to continue to fall. High end office rents should also deteriorate as fewer and fewer $100/RSF rents are achieved and more hedge fund space comes back on the market.

Retail rents should plummet as retail sales did over Christmas combined with the store closing of banks and national retailers who not only close stores but cancel or curtail new expansion as well.
DEC 2008
December 2008: New York Real Estate Market Report

Rents drop and Landlords are nervous as more than 3.5 million square feet came back on the market, with negative absorption of 1.8 million square feet. Rents are likely to continue to fall as additional continues to come back on the market in the coming months, from the recent layoffs in banks and former investment banks.
NOV 2008
November 2008: New York Real Estate Market Report

Office vacancies in Manhattan dramatically increased by 2.26 million square feet in October. Increased vacancies will continue resulting from announced layoffs that will result in future vacancies as floors are restacked and vacated. As a direct result, Landlords are much more negotiable than previous months in both asking rents and free rent and work contributions.
OCT 2008
October 2008: New York Real Estate Market Report

Last month, nine hundred thousand square feet came back on the market with millions of square feet to follow as Lehman Brothers, AIG, Merryl Lynch put additional back on the market. Asking rents are being reduced and landlord concession packages are increasing, yielding a 10 to 15% net effective rent reduction. Still major firms are putting off major lease decisions until they determine their future size and needs and holding out as long as they can to get the best price possible.
SEP 2008
September 2008: New York Real Estate Market Report

Midtown office rents soften as Midtown office vacancies increase. Space has increased from 650,000 square feet over the previous month to over 13,000,000 square feet. As a result landlords are being more flexible. They are trimming asking rents and being more negotiable in build out concessions.
AUG 2008
August 2008: New York Real Estate Market Report
JUL 2008
July 2008: New York Real Estate Market Report
JUN 2008
June 2008: New York Real Estate Market Report

Office vacancies continue to increase slowly, but will substantially increase due to the recent Wall Street and bank layoffs as the surplus of office comes back to the market. In addition, Bank of America is moving to its new headquarters and will release or sublease its former occupied space.
MAY 2008
May 2008: New York Real Estate Market Report

Last month, office vacancies increased in Midtown and Downtown due to the recent financial layoffs resulting in being given back, as either direct or sublease space. As a result, Landlords’ are starting to drop rents.
APR 2008
April 2008: New York Real Estate Market Report
MAR 2008
March 2008: New York Real Estate Market Report
FEB 2008
February 2008: New York Real Estate Market Report
JAN 2008
January 2008: New York Real Estate Market Report
DEC 2007
December 2007: New York Real Estate Market Report
NOV 2007
November 2007: New York Real Estate Market Report
OCT 2007
October 2007: New York Real Estate Market Report
SEP 2007
September 2007: New York Real Estate Market Report
AUG 2007
August 2007: New York Real Estate Market Report

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JUL 2007
July 2007: New York Real Estate Market Report

Manhattan rents continue to increase while vacancies throughout Manhattan decrease.

A number of major developers are planning new office buildings, as office rental rates justify new construction, and demand is there to fill the buildings. Retail vacancies increased slightly in Midtown and Midtown south.
JUN 2007
June 2007: New York Real Estate Market Report
MAY 2007
May 2007: New York Real Estate Market Report
APR 2007
April 2007: New York Real Estate Market Report
MAR 2007
March 2007: New York Real Estate Market Report
FEB 2007
February 2007: New York Real Estate Market Report
JAN 2007
January 2007: New York Real Estate Market Report

New York City Real Estate News Archive

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Building Sales:

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Manhattan Retail:

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New York Office Market Overview:

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