A report issued this month by the Capital Market group of Cushman & Wakefield Inc., one of the city's major brokers of commercial real estate, indicated that 7.4 percent of the city's 394,986,000 square feet of commercial space was vacant, of which 5.8 percent was direct and 1.7 percent sublease.
It noted that "equilibrium in the market was 7 to 9 percent total" and that in 1996 the total vacancy rate got up to about 13 percent.
A year ago, the city's total vacancy rate was about 5.7 percent and the report indicated that it could rise to 11.5 percent near year.
"Asking rental rates in New York reached historically high levels it the 3Q08, with the overall average rates of $73 PSF [per square foot for Manhattan and $85 PSF for Midtown. However, on a monthly basis, the first decrease was registered in September and "leasing velocity slowed significantly in the 3Q08." In 1995, the overall asking rental rates was $26.22 per square foot.
On a more positive note, the report fond that the Midtown New York office market had occupancy costs of $100, which ranked it tenth in the world.
The highest such costs were $311 in the West End of London, $238 in the central business district of Hong Kong, $210 in the central business district of Tokyo, $166 in the Central-Worli section of Mumbai in India, $158 in the central business district of Moscow, $141 in the central business district of Paris, $130 in the central business district of Singapore, $126 in the central business district of Dubai and $112 in the central business district of Dublin.
The survey found that that total average asking rent in Midtown in the third quarter of this year of $84.48 was $10.01 higher than the same quarter in 2007, but there were wide discrepancies in different neighborhoods. The Times Square South district, for example saw asking rents of $53.05 in the third quarter this year versus $55.25 in the same period last year while the Madison/Fifth corridor had $115.76 asking rents this quarter versus only $98.65 in the same quarter last year.
It noted that "equilibrium in the market was 7 to 9 percent total" and that in 1996 the total vacancy rate got up to about 13 percent.
A year ago, the city's total vacancy rate was about 5.7 percent and the report indicated that it could rise to 11.5 percent near year.
"Asking rental rates in New York reached historically high levels it the 3Q08, with the overall average rates of $73 PSF [per square foot for Manhattan and $85 PSF for Midtown. However, on a monthly basis, the first decrease was registered in September and "leasing velocity slowed significantly in the 3Q08." In 1995, the overall asking rental rates was $26.22 per square foot.
On a more positive note, the report fond that the Midtown New York office market had occupancy costs of $100, which ranked it tenth in the world.
The highest such costs were $311 in the West End of London, $238 in the central business district of Hong Kong, $210 in the central business district of Tokyo, $166 in the Central-Worli section of Mumbai in India, $158 in the central business district of Moscow, $141 in the central business district of Paris, $130 in the central business district of Singapore, $126 in the central business district of Dubai and $112 in the central business district of Dublin.
The survey found that that total average asking rent in Midtown in the third quarter of this year of $84.48 was $10.01 higher than the same quarter in 2007, but there were wide discrepancies in different neighborhoods. The Times Square South district, for example saw asking rents of $53.05 in the third quarter this year versus $55.25 in the same period last year while the Madison/Fifth corridor had $115.76 asking rents this quarter versus only $98.65 in the same quarter last year.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
6sqft delivers the latest on real estate, architecture, and design, straight from New York City.
