New York Market Overview
- Total Manhattan Class A Office vacancies decreased from 9.7 % vacant to 9.5 % vacant
- Total New York City Office vacancy decreased from 8.2 % vacant to 8.0 % vacant
Chinese investors could bring more than $50 billion to the New York City real estate market.
Large Manhattan Class A office building sales are hot. 12 towers worth nearly $9 billion sold or went into contract in the first quarter of 2015. Investment sales hit a record of $20.8 billion in the first quarter of the year. The first quarter saw a 26 percent increase in transaction over the previous quarter.
Midtown office property values are now about 10 percent higher than at their pre-crisis peak in 2007. Midtown office values seem poised to continue their upward trend amid strengthening market fundamentals and robust capital flows.
Finance, law and tech companies dominated the Manhattan office market during the first quarter of 2015.
Average asking office rents in Manhattan reached their highest since 2008.
Manhattan leasing activity was constant with overall vacancy rates 9.2 percent, a 1.3 percent decline from the previous year. Average asking rents were up across all markets, average asking rent in Manhattan rose to $68.50 per square foot.
Developers and investors are pouring an increasing amount of capital into commercial and residential real estate projects in the Bronx, looking beyond the portions of Brooklyn and Queens where prices have skyrocketed, to gamble on what is the next outer borough hot spot.