New York City Commercial Real Estate Broker

May 2012: New York City Office, Retail and Industrial Market Report

admin — Wed, 02 May 2012 13:29:54 +0000

Two large leases kept the quarter out of the doldrums. Viacom, signed a 15-year renewal and expansion through 2031 which will ultimately give the company the entire 1.6 million-square-feet office portion at 1515 Broadway. Morgan Stanley signed the other major lease renewal-and-expansion at 1 New York Plaza for 1.1 million square feet.

These two deals significantly helped a slow three-month leasing period in Manhattan which was still 1.2 million square feet less than normal for the quarter.

Small leases 1,000-5,000 RSF were very active. While Mid-size 6,000-50,000 RSF tenants remain cautious.

New York City Market Overview:

There were several large new subleases coming on the market, such as: Dewey & LeBoeuf, the massive law firm that is considering filing for bankruptcy, is looking to sublease up to 160,000 square feet of the firm’s space at 1301 Sixth Avenue.

April 2012: New York City Office, Retail and Industrial Market Report

admin — Mon, 02 Apr 2012 19:31:40 +0000

Last month's Manhattan office leasing volume was not even 25% of last years. Leasing volumes, to date, annualized for 2012 are about ½ of what they were in 2011. Incentives such as naming rights, terraces and bring your dog to work are now being offered by landlords to get tenants interested...

New York City Market Overview:

In the first quarter of 2012, Manhattan office leasing is the leanest it has been in almost three years. About 5.7 million square feet of space will be leased in the first three months of the year in Manhattan, marking the lowest volume of leasing since the second quarter of 2009, when 4.5 million square feet was leased.

March 2012: New York City Office, Retail and Industrial Market Report

admin — Mon, 05 Mar 2012 16:22:13 +0000

Tenants are continuing to be slow in making long term decisions, therefore leasing volumes have been quiet for the last few quarters. 6 million square feet of new office inventory wil be coming online this year. This will lead to interesting game of blink as to whether Landlords will lower their rents in order to get deals done.

New York City Market Overview:

Manhattan’s slumping office market is about to be get worse, when 6 million square feet of new office space will be delivered to the market — the most since 1989.

February 2012: New York City Office, Retail and Industrial Market Report

admin — Sat, 04 Feb 2012 16:30:53 +0000

Office building Developers were overly optimistic that they were going to sign millions of square feet of leases with New York corporations looking to consolidate. With the economy in flux, it is yet to happen.

January 2012: New York City Office, Retail and Industrial Market Report

admin — Mon, 02 Jan 2012 17:59:40 +0000

Predictions for Manhattan Real Estate – Year 2012

Retail
Prime retail rents will continue to rise but not as dramatic as previous years. Fringe retail rents will continue to fall 10-20%.

Office Space
Class A office rents depend upon the financial success of Banking and Investment Banks. It’s a seesaw, if more layoffs, then rents in Class A Office Buildings could fall 10-20%. If neutral to hiring of employees, prices will continue to rise until it is economically viable to build new office buildings (which needs to be about $100/RSF rent).

December 2011: New York City Office, Retail and Industrial Market Report

admin — Fri, 02 Dec 2011 16:54:59 +0000

Office leasing volume tapered off from a strong start at the beginning of the year. This coincided with the recent market gyrations since August. Companies are starting to delay decisions until the stock market volatility lessens.

Prime retail property is full while secondary locations languish.

New Residential construction has restarted. Banks are now lending to experienced, well financed developers. As a result, the number of stalled projects has declined 8% from the previous year.

November 2011: New York City Office, Retail and Industrial Market Report

admin — Wed, 02 Nov 2011 14:19:56 +0000

We have been talking about pending new construction for the last few newsletters. Now it has finally happened. Coach is buying a new building to be constructed as part of Related development on the West Side. Brookfield is also about to start constructing the $300 million deck above the rail tracks. This will dramatically change the neighborhood from fringe to potentially the next Rockefeller Center on the West Side.

October 2011: New York City Office, Retail and Industrial Market Report

admin — Wed, 05 Oct 2011 15:08:19 +0000

Two trends have occurred this month. The 1st is the stock market has been fluctuating widely. The 2nd is office vacancies have started to increase in Midtown and Downtown though office rents have yet to decline.

September 2011: New York City Office, Retail and Industrial Market Report

admin — Wed, 07 Sep 2011 15:18:30 +0000

New construction for both office building and residential is occurring in Manhattan.

European and other foreign retailers continue to enter the Manhattan market and are outbidding American retailers.

August 2011 New York City Office, Retail and Industrial Market Report

admin — Wed, 03 Aug 2011 18:55:27 +0000

Midtown office demand and rents are rising to the point that justifies new office construction. This is due to financial firms relocating to Midtown.

New York City Market Overview:

The dollar volume of property sales in the second quarter of 2011 surged, largely on $100-million-plus transactions. Sales doubled to $9.4 compared to the previous quarter. There were 25 such sales in the second quarter as opposed to the 11 recorded in the first quarter, overall sales activity remained stagnant, as 187 transactions closed in each quarter.