Regions
Northeast | New York
Jul 02, 2009
New York City’s office market is still feeling the effect of the global industry and economic turmoil, according to a new report by Jones Lang LaSalle. The report cited rising vacancy rates for Class A office space in the city’s Midtown submarket, with rates reaching 15 percent at midyear, a level not seen in that submarket for some 15 years.. Midtown posted large increases in vacancy rates in all building types. Midtown also recorded the largest decreases in average asking rental rates. Class A space posted an average asking rental rate of $73.10 per square foot at midyear 2009, a drop of 10.8 percent from Class A rents of $81.92 per square foot seen in the first quarter of 2009. The Lower Manhattan submarket, meanwhile, fared somewhat better, with overall vacancy rates increasing to 10.8 percent at midyear 2009, a gain of just 5 percent from the overall vacancy rate of 10.3 percent posted in the first quarter of the year. Leasing activity has decreased sharply throughout Lower Manhattan over the past few years. In 2006, space users Downtown signed 10 leases greater than 100,000 square feet; in 2007, the area posted eight leases greater than 100,000 square feet; and so far this year, there have been only three such deals. The largest lease signed this year remains the China Center, which committed to 190,810 square feet at One World Trade Center, formally known as the Freedom Tower. Lower Manhattan posted average asking rental rates of $46.21 per square foot for Class A buildings at midyear 2009, a decrease of 4.2 percent from Class A rents of $48.22 per square foot seen in the first quarter.
New York City’s office market is still feeling the effect of the global industry and economic turmoil, according to a new report by Jones Lang LaSalle. The report cited rising vacancy rates for Class A office space in the city’s Midtown submarket, with rates reaching 15 percent at midyear, a level not seen in that submarket for some 15 years.. Midtown posted large increases in vacancy rates in all building types. Midtown also recorded the largest decreases in average asking rental rates. Class A space posted an average asking rental rate of $73.10 per square foot at midyear 2009, a drop of 10.8 percent from Class A rents of $81.92 per square foot seen in the first quarter of 2009. The Lower Manhattan submarket, meanwhile, fared somewhat better, with overall vacancy rates increasing to 10.8 percent at midyear 2009, a gain of just 5 percent from the overall vacancy rate of 10.3 percent posted in the first quarter of the year. Leasing activity has decreased sharply throughout Lower Manhattan over the past few years. In 2006, space users Downtown signed 10 leases greater than 100,000 square feet; in 2007, the area posted eight leases greater than 100,000 square feet; and so far this year, there have been only three such deals. The largest lease signed this year remains the China Center, which committed to 190,810 square feet at One World Trade Center, formally known as the Freedom Tower. Lower Manhattan posted average asking rental rates of $46.21 per square foot for Class A buildings at midyear 2009, a decrease of 4.2 percent from Class A rents of $48.22 per square foot seen in the first quarter.
Recent New York Headlines
Jul 15, 2009
Jul 31, 2009
Jul 29, 2009
May 26, 2009
Jun 25, 2009
Jul 22, 2009
Jul 14, 2009
Jul 09, 2009
Jun 10, 2009
Jul 28, 2009
Jul 02, 2009
Jun 22, 2009
May 29, 2009
Aug 06, 2009
Nov 26, 2008
Aug 07, 2009
Subscribe to this blog's feed
