market research

September 2017

September 2017 New York Commercial Real Estate Market Report

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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.

New York Market Overview

  • Total Manhattan Class A Office vacancies decreased from 9.1 % vacant to 8.9 % vacant
  • Total New York City Office vacancy increased from 8.2 % vacant to 8.3 % vacant
Office: In July, 3.2 million square feet of office space was leased, up 10.2% from July 2015. Pricing stayed relatively flat, at $73.12 per square foot. Downtown’s office 7.5% rent increased to $63.33 per square foot.

Retail: Soho has been hit hard with availability rate soaring to 23.1% in the second quarter of this year. Asking rents for ground-floor retail space in the neighborhood also decreased 12% from the end of 2015 to $478 per square foot.

Upper East Side has 82 empty storefronts along Madison, Lexington, Third and Second Avenues between 57th and 96th streets.

Third Avenue between East 57th and 79th streets had a retail vacancy of 16.6% availability, a 7% increase from the previous year-

Total Manhattan Class A Office vacancies decreased from 9.1 % vacant to 8.9 % vacant
Madison Avenue between East 57th and 72nd streets had an availability rate of 23.5%, a 5.3% jump year over year with asking rents on the avenue on average of $1,431 per square foot.

Commercial property sales are projected to total less than $20 billion in 2017, a 51% decrease from 2016, and lower than any year since 2010.
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