crain's Real Estate Daily Vacancies down steeply, rents up slightly, in 2Q By Tommy Fernandez July 6, 2011 1:15 p.m. Second quarter vacancy-rate drops, by neighborhood Overall Manhattan:The vacancy rate for all major office classes- fell 1.7 percentage points from the second quarter of 2010, to 10.8%. Class A vacancies dropped 1.3 percentage points, to 10.8%, and Class B rates fell 2 percentage points, to 11%.
Midtown: The area's- vacancies fell 1.6 percentage points overall, to 11.6%. Class A vacancies in the neighborhood dropped 1.7 points, to 11.7%, while Class B rates fell 1.4 points, to 11.4%.
Midtown south: Its overall- vacancy rate dropped 3.4 percentage points, to 6.7%, while Class A vacancies fell 2.7 points, to 6.5%, and Class B rates were down 3.6 points, to 6.8%.
Downtown: It had among the smallest decreases- in vacancy rates. Vacancies slid 0.7 percentage points, while Class A rates dipped only one-tenth of a point, to 9.2%. Class B vacancies, though, fell 2.1 points, to 14.8%.
More signs that the Manhattan office market is quickly rebounding:Vacancy rates dropped and rents jumped in the second quarter in a variety of neighborhoods and commercial real estate classes, according to stats compiled by Jones Lang LaSalle. Manhattan's overall vacancy rate fell in the quarter to 10.8%, down 1.7 percentage points from the year-earlier period. Overall rents in Manhattan during the quarter reached $53.49 per square foot, up 2.7% from a year ago. Meanwhile, Class A rents surged 4.7%, to $61.13 per square foot. “We've seen consistent rental growth and a consistent reduction in the vacancy rate over the first half of this year, which all bodes well for the strength and resiliency of the New York City marketplace,” said Jones Lang LaSalle Vice Chairman Paul Glickman. Some of the biggest rent changes in the second quarter occurred in overall and Class A rents in the following Manhattan markets: -Downtown, where overall rents rose 4.4% from the year-earlier period to $38.81 per square foot and Class A rents jumped 7.6% to $41.66. Midtown, with overall rents increasing by 2.6%, to $60.10 per square foot, and Class A rents rising 5% to $67.44.- Midtown south, which saw a 1.3% rise in overall rents, to $43.68, and a 5.7% jump in Class A rents, to $48.86.- Meanwhile, Class B prices dipped or remained flat in some neighborhoods. Overall in Manhattan, Class B rents fell 2.4% to $42.83, while in midtown and midtown south, they fell 3.6% to $46.62, and 0.6% to $41.88, respectively. Downtown Class B rents saw a slender 0.1% increase to $35.72. “We've seen a flight to quality as we've witnessed a number of large consolidations to premier blocks of space—which are increasingly becoming more scarce,” Mr. Glickman said. Mr. Glickman also saw further evidence of growing confidence in the New York City marketplace in speculative construction that is now occurring. For example, there is Edward J. Minskoff's planned construction of 51 Astor Place—a 400,000-square-foot building designed by Fumihiko Maki, who is also the architect for World Trade Center Tower No. 4. It is expected to be ready for business by early 2013. “New York City's economic woes weren't as deep as originally expected, and therefore the market rebound was also a lot quicker than expected,” Mr. Glickman said.
THE REAL DEAL
Rising rents highlight Manhattan office rental market in Q1 April 12, 2011 06:00PM New York City office rentals got more expensive in the first quarter of 2011, even as vacancy and absorption rates remained mostly unchanged, according to separate reports released today by Cassidy Turley and Colliers International. Li & Fung's rental in the Empire State Building, Lazard and Deloitte signing for space in 30 Rockefeller Center and Bloomberg LP's move to 120 Park Avenue steered the strong market. The average asking rent in Manhattan rose from $48.62 per square foot to $50.18 per square foot, highlighted by a $2.14-per-square-foot jump in Midtown North, according to Colliers International. The firm reported an availability rate of 11.7 percent, down 0.1 percent from the fourth quarter of 2010, and just 300,000 square feet of net absorption. The Cassidy Turley report, which focused on Class A properties in New York City, Westchester, Nassau and Suffolk counties and Fairfield County in Connecticut, found a 14.1 percent vacancy rate, 191,867 square feet of net absorption and a $49.60-per-square-foot asking rent. The report predicts burgeoning rents, shrinking vacancy rates, and continued momentum in large leases, leasing activity and new developments. Colliers said the city recovered 44.5 percent of the jobs it lost during the recession, sparking the strengthening market.
crain's Real Estate Daily Manhattan boasts 4 of Top 10 retail strips
Manhattan shopping meccas dominate Americas, and Fifth Avenue takes the honors for the priciest in the world for the tenth year in a row. Rents are up strongly except on Madison Avenue.
By Theresa AgovinoSeptember 1, 2011 5:59 a.m. For the 10th year in a row, Fifth Avenue ranks as the most expensive shopping street in the world, according to a new report from Cushman & Wakefield Inc.Rents on the stretch of the storied thoroughfare between 49th street and Central Park South averaged $2,250 a square foot in the year ended June 30—a 22% leap over the corresponding period one year earlier. What's more, Fifth Avenue's rents are 16% more than those along the planet's second-most expensive street, CausewayBay in Hong Kong.“New York is the top of everyone's list as a global destination,” said Gene Spiegelman, an executive vice president at Cushman. He added the hordes of tourists parading up Fifth Avenue make it the perfect spot for retailers to showcase their brands.“Retailers believe in having a brick and mortar flagship store as part of their identity and many want them on Fifth Avenue,” Mr. Spiegelman said.Fifth Avenue is hardly the only Manhattan shopping strip that's popular with retailers these days. All told, four of the ten priciest streets in the Americas are in Manhattan: Times Square, East 57th Street and Madison Avenue follow Fifth Avenue, in that order. This is the first time that the Times Square bowtie, between West 42nd Street and West 47th Street, has made the list. It did so with rents averaging $1,350 a square foot. There is no corresponding annual data from the previous year because Cushman only recently started measuring that specific location. However, as of September 2010, rents there averaged $1,000 a square foot.“Times Square is the center of the world and it has become another place where retailers want to express their identity,” said Mr. Spiegelman. He noted that the area is especially popular with moderately priced retailers that would appeal to a mass audience, especially a younger clientele.Rents on East 57th Street between Fifth and Madison avenues have also been going up a brisk rate, rising 20% to $1,200 a square foot year-over-year. Of the top four Manhattan shopping strips, Madison Avenue was the laggard. There, rents inched up only 2% to $847 a square foot. The stretch between East 57th Street and East 72nd Street, which is home to many luxury retailers, has been especially hard hit by the recession.
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