New York Market Overview
- Total Manhattan Class A Office vacancies increased from 8.9 % vacant to 11.3 % vacant
- Total New York City Office vacancy decreased from 8.1 % vacant to 7.9 % vacant
Manhattan Office:This month’s top office leases had more square footage than last month. The top 9 office lease deals totaled 2.3 million square feet, greater than last month’s 1.7 million square feet.
Midtown South’s office surpassed Midtown in asking rents for the first time ever. Asking rents in Midtown South climbed 9% year over year to $78.36 per square foot, compared with Midtown’s $77.13. The submarket saw 1.9 million square feet leased in the second quarter, a 42% increase from the five-year quarterly average.
Total Manhattan Class A Office vacancies increased from 8.9 % vacant to 11.3 % vacant
Manhattan Retail:Retail rents across Manhattan continued to fall in 2018’s second quarter, but leasing activity is picking up as landlords come to terms with the market. Along Madison Avenue, where rents fell by 9.2% year over year, 16 new stores opened in the first half of the year.
The Flatiron was the strongest market in the second quarter, with asking rents remaining flat at $421 per square foot and the availability rate dropping by 3% points to 12.7%. Soho continued to struggle. Rents there fell by 12.6% to $418, second only to Upper Fifth Avenue, while availability inched up to 24.5%.
Average asking rent per square foot in the Meatpacking District on Gansevoort Street was $403 during the second quarter of 2018, a 16.1% drop from the second quarter of 2017, when the price was $481 per square foot.
Along Madison Avenue, rents fell by 9.2% year over year, 16 new stores opened in the first half of the year.
This month’s top 10 retail leasing deals totaled less than half of last month in terms of square footage. With 171,900 square feet leases signed, down 344,900 square feet from last month’s total of 516,800 square feet.