The worldwide recession has
significantly altered the New York City
commercial real estate landscape. As the inventory of vacant offices increased in 2009, many pragmatic Landlords responded by reducing
rental prices and increasing the "Tenant incentives" provided to
businesses signing leases. Tenant incentives include: rent abatements, cash
given to a Tenant to pay for its renovations (the cash contribution); and
(or) Landlord "build to suit" programs.
At years-end
2009, NYC office vacancy averaged 7.6% across all New York City
markets (Downtown, Midtown, Midtown South and Uptown) and all building
classes (A, B and C). The average "quoted rents" for offices in all
building classes were $40.60 Downtown, $46.39 Midtown, $40.74 Midtown South,
and $40.28 Uptown. Although final lease contract prices are not published,
they are significantly less across the board.
It is reliably
projected that throughout 2010 the office vacancy rate will increase
further. And since about one-third of this vacancy will be sublease space which
is offered at a discount (when compared to direct leases), the
downward pressure on rental rates will continue. In this environment
many economical deals will be available. By utilizing its
expertise, Cogent Realty Advisors can identify these opportunities
and maximize the power of your rental dollars.
Sub-market
# Buildings
Class A
Class B
Class C
Vacancy %
Downtown
461
$42.27
$37.27
$34.83
7.0%
Midtown
1,592
$56.72
$40.44
$33.38
7.9%
Midtown South
1,280
$56.94
$41.03
$37.74
7.6%
Uptown
373
$40.77
$49.43
$33.93
4.9%
Recent Lease Transactions:
Antiquorum USA... Auctioneer of Fine Watches Candlesticks, Inc... Children's Clothing Manufacturer Chait Galleries... Fine Art Child Abuse Prevention Program... Non-profit Organization Cohen & Hochman, PC... Legal Services Costas Kondylis & Partners... Architecture & Design CraigMichaels, Inc... Business Event Planners Christian Science Reading Room... Religious Organization CyberTrust, Inc... Network Security Diane Young Skin Care, Inc... Cosmetics Manufacture & Sales Direct Trading, Inc... Financial Services Garson, Gerspach, Decorato & Cohen, LLP... Legal Services Geraldine Russo, LCSW... Medical Pactice Hudson Ferry Capital, LLC... Investment Banking Icahn & Company, Inc... Financial Services IFSCLUSA, Inc... Financial Services International Distributors, USA Inc... Automotive Supply KK Salon... Unisex Hair Salon Litetouch Consulting Corporation... Medical Cosmetology Mailroom, Inc... Packaging and Shipping Services Matthews, Matson, Kelley, Inc... Adjustors & Marine Surveyors Merit Consulting Services, Inc... Executive Search Firm Murno & Veneziale Architects, LLP... Architecture & Design Nabbr.com... Internet Advertising & Product Marketing Press of Fremont Payne... Legal Printing Rehabilitation Medicine Group... Medical Practice Robert Hochman, PC... Legal Services Ross Art Group, Inc...Vintage Poster Art Gallery Royal Associates, Inc... Insurance Brokers R.V.I. National Insurance Group... Residual Value Insurer SMS Industries, Inc... Personnel & Document Management Sterling Asset Management, Inc... Financial Services STM, LLC... Investment Banking Trade Center Security Systems, Inc... Locksmith and Hardware Yoga to the People, Inc... Yoga & Wellness Center
