Cogent Realty Advisors, Inc.

Real Estate Solutions for New York Business.

OFFICE  LEASING  The recession has significantly altered the New York City commercial real estate landscape.  Confronted with a large increase in vacant offices in 2009 (which stabilized in 2010), 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 the end of the second quarter of  2011, office vacancy averaged 7.9% across all of New York City's markets (Downtown,  Midtown, Midtown South and Uptown) and all building classes (A, B and C). The average "quoted rents"  in all building classes have increased in 2011. They are $39.08 in Downtown, $52.39 in Midtown, $40.76 in Midtown South, and $40.30 Uptown.   It is reliably projected that for the second half of 2011 the city-wide office vacancy rate will diminish slightly. This will result in the stabilization of rental rates in most submarkets and significant increases in more desirable properties including buildings that are "transportation-centric"  and modern Class A office towers. In this environment economical deals are still available but they are more challenging to locate. By utilizing its expertise, Cogent Realty Advisors can identify these opportunities and maximize the power of your rental dollars.        Total Office Market Statistics:        Sub-market      # Buildings    Class A     Class B     Class  C      Vacancy %        Downtown  502  $40.46  $35.88  $39.36  8.4%        Midtown  1,582  $63.64  $42.19  $32.33  8.0%        Midtown South  1,301  $54.24  $42.87  $37.78  7.0%        Uptown  390  na  $43.36  $36.11  6.9% *Data provided by CoStar Group, the #1 Commercial Real Estate Information Company. RETAIL  LEASING  At the end of the second quarter of 2011, the vacancy rate for retail stores throughout Manhattan was 2.2%. This is a small increase over the vacancy rate of 2.0% at the end of 2010. During the prior two years some banks and luxury brands had exited the market and this created opportunities for regional and local retailers to secure better located stores at more affordable rents.    Total Retail Market Statistics:        Sub-market      # Buildings    Quoted Rates      Vacancy %        Downtown  590  $117.16  1.9%        Midtown  853  $83.72  1.9%        Midtown South  2,369  $95.11  2.2%        Uptown 1,385  $32.66  2.6% *Data provided by CoStar Group, the #1 Commercial Real Estate Information Company. Cogent Realty Advisors, Inc. One Penn Plaza, 36th Floor, NYC 10119 Tel. 212.509.4049 • Fax. 347.772.3131 Web Hosting powered by Network Solutions®