New York Market Overview
- Total Manhattan Class A Office vacancies decreased from 5.5 % vacant to 5.4 % vacant
- Total New York City Office vacancy stayed at 5.3 % vacant
With Class A market vacancies in Midtown at 5.1%, (levels not seen since 2001), Landlords are competing to see who can charge the highest rents. Highest asking rents of $225/RSF are reported for the top floors of 9 West 57th Street, $185 for the remaining floor at One Brant Park, to name a just a few. A sampling of 80 Class A Office buildings leased from April to September showed an increase in average direct lease rents from $99.00 to $107.50 per RSF.
Governor Moves Closer to a Costlier Javits Plan
The Spitzer administration told hotel industry executives that it is leaning toward an expansion plan for the Jacob K. Javits Convention Center that comes with a $3.2 billion price tag. Dismayed industry leaders, have told state officials they would oppose increasing the hotel tax to finance the plan. The expansion would add 200,000 square feet of exhibition space and 100,000 square feet of meeting room space and a ballroom.
Mayor Michael Bloomberg and Borough president Scott Stringer supports Columbia University's proposed push north into West Harlem17-acre expansion plan. Columbia has agreed to spend $32.75 million on community projects in West Harlem, including affordable housing, a new park, landscaping for public housing and waterfront maintenance. City Planning Commission, the City Council and Mayor Bloomberg must allow rezoning for the expansion.
New homes sales have dropped to their lowest point since June 2000, according to a Bloomberg survey of economists.
While politicians urge lenders and struggling homeowners to work together to hold back a growing tide of foreclosures, a Moody's survey reported that sub prime lending services have changed only 1 percent of adjustable-rate mortgages that reached higher rates by July.
More than 40 billion Manhattan buildings have been sold to date, more than any previous full year. The question for the market is what effect will sub prime have and new lending standards have on market pricing?.
Upper West Side Down zone
The City Council has unanimously voted to downzone 51 Upper West Side blocks. With the tightening of air right transfers and limits of 14 stories on Broadway, ten to 11 stories on other avenues, and six to seven stories on side streets, high-rises like Extell Development's Ariel East and Ariel West can no longer be built.
The Real Estate Board of New York is launching a free public residential Web site that will have thousands of exclusive home listings. ResidentialNYC.com will contain sales and rental listings from participating REBNY members on a single Web site. More than 10,000 listings a day will be put on the site from the REBNY
The Port Authority of New York and New Jersey is exploring to sell off parts of Freedom Tower. Deutsche Bank is also exploring the feasibility of bringing in equity partners.
Deutsche Bank Tower fire could stall development at WTC site as other buildings await the demolition of the Deutsche Bank Tower before their construction can commence.