Beruflich Dokumente
Kultur Dokumente
he summer doldrums didnt hit Manhattan during the third quarter, as leasing activity continued to tick upward
in much of the market. Downtown Manhattan was the strongest performer of the citys three major submarkets
during that period, buoyed by healthy leasing in Class B stock and spillover from Midtown South. Tech continues
to be a major driver in all sectors of the market, as growing industry diversification is making up for lack of growth
in the financial services sector. Overall, Manhattan had a pretty good quarter, and thats despite the fact it is the
summer months and the third quarter is not high volume historically, summarized Don Noland, managing director
of research at Cushman & Wakefield. With the help of Mr. Noland and Jim Delmonte, director of research, The
Commercial Observer sheds some light on the third-quarter office market.
MANHATTAN OFFICE MARKET - THIRD QUARTER 2013
24%
Inventory
Total
Available
Space
Midtown
324
182,927,081
22,181,044
Midtown South
29
15,601,758
1,212,918
Submarket
Downtown
Totals
Sublease
Vacancy
Rate
2.5%
1.5%
OFFICE
1.3%
Rentalthere
Rate is Rental Rate
Rental Rate
positive activity in the leasing market, Mr.
12.1% said. What
1.0% we have$74.77
$72.99
Noland
seen is that$61.04
7.8% are executing
3.4%
$81.73
$50.70
tenants
longer-term
leases.
MARKET
- THIRD
QUARTER
2013 $74.55
580,840
47
47,750,122
6,180,149
43.1%
5,540,319
639,830
11.6%
12.9%
3.8%
$51.65
$33.51
$50.71
12.2%
2,115,979
1.7%
(2,297,550)
(2,391,679)
400
246,278,961
29,574,111
17.7%
24,163,942
5,410,169
9.8%
2.2%
12.0%
1.6%
$69.75
$57.34
$68.40
2.0%
11,951,729
24.1%
(2,479,080)
(3,447,020)
Y-o-Y
% Change
Direct
Available
Space
Sublease
Available
Space
Direct
Vacancy
Rate
Sublease
Vacancy
Rate
Total
Vacancy
Rate
Y-o-Y
% Pt. Change
Direct
Wtd. Avg.
Rental Rate
Sublease
Wtd. Avg.
Rental Rate
Total
Wtd. Avg.
Rental Rate
Y-o-Y
% Change
Year-to-Date
Leasing
Activity
Y-o-Y
% Change
Year-to-Date
Direct Absorption
Rate
Year-to-Date
Total Absorption
Rate
7.1%
9.9%
(253,294)
(194,918)
(382,653)
(1,111,852)
Submarket
Number of
Buildings
Inventory
Total
Available
Space
43,931,134
182,927,081
4,665,247
22,181,044
Midtown
326
324
4,199,705
17,642,375
465,542
4,538,669
9.6%
1.1%
2.5%
0.8%
1.0%
$49.93
$74.77
$46.00
$61.04
$49.77
$72.99
9.6%
1.7%
1,848,158
9,142,794
-10.1%
29.7%
Midtown South
188
29
29,530,966
15,601,758
2,674,351
1,212,918
36.7%
92.8%
2,369,735
981,248
304,616
231,670
8.0%
6.3%
1.0%
1.5%
9.1%
7.8%
2.4%
3.4%
$59.65
$81.73
$54.69
$50.70
$59.39
$74.55
20.0%
12.3%
1,260,266
692,956
-27.0%
38.9%
(782,120)
13,388
(666,526)
56,511
Downtown
56
47
27,183,015
47,750,122
2,168,747
6,180,149
-27.4%
43.1%
1,807,091
5,540,319
361,656
639,830
6.6%
11.6%
1.3%
8.0%
12.9%
-2.8%
3.8%
$37.00
$51.65
$26.00
$33.51
$36.24
$50.71
4.7%
12.2%
1,686,366
2,115,979
44.7%
1.7%
732,747
(2,297,550)
580,840
(2,391,679)
570
400
100,645,115
246,278,961
9,508,345
29,574,111
2.2%
17.7%
8,376,531
24,163,942
1,131,814
5,410,169
8.3%
9.8%
1.1%
2.2%
9.4%
12.0%
0.3%
1.6%
$49.89
$69.75
$41.95
$57.34
$49.39
$68.40
15.4%
2.0%
4,794,790
11,951,729
-3.1%
24.1%
(302,667)
(2,479,080)
(468,339)
(3,447,020)
Total
Available
Space
Y-o-Y
% Change
Direct
Available
Space
Sublease
Available
Space
Direct
Vacancy
Rate
Sublease
Vacancy
Rate
Total
Vacancy
Rate
Y-o-Y
% Pt. Change
Direct
Wtd. Avg.
Rental Rate
Sublease
Wtd. Avg.
Rental Rate
Total
Wtd. Avg.
Rental Rate
Y-o-Y
% Change
Year-to-Date
Leasing
Activity
Y-o-Y
% Change
Year-to-Date
Direct Absorption
Rate
Totals
10.6%
12.1%
Submarket
Number of
Buildings
Inventory
Midtown
150
326
15,815,466
43,931,134
752,437
4,665,247
-6.5%
7.1%
596,226
4,199,705
156,211
465,542
3.8%
9.6%
1.0%
1.1%
4.8%
10.6%
-0.3%
0.8%
$39.71
$49.93
$28.08
$46.00
$39.01
$49.77
4.2%
9.6%
423,373
1,848,158
-29.2%
-10.1%
74,135
(253,294)
(29,065)
(382,653)
Midtown South
214
188
20,156,303
29,530,966
1,092,517
2,674,351
-35.3%
36.7%
895,908
2,369,735
196,609
304,616
4.4%
8.0%
1.0%
5.4%
9.1%
-2.5%
2.4%
$46.18
$59.65
$47.69
$54.69
$46.29
$59.39
5.3%
20.0%
790,180
1,260,266
-11.4%
-27.0%
2,054
(782,120)
(106,933)
(666,526)
Downtown
Totals
72
56
9,923,197
27,183,015
861,094
2,168,747
35.4%
-27.4%
836,085
1,807,091
25,009
361,656
8.4%
6.6%
0.3%
1.3%
8.7%
8.0%
2.5%
-2.8%
$35.10
$37.00
$38.50
$26.00
$35.11
$36.24
10.4%
4.7%
467,168
1,686,366
-35.9%
44.7%
9,442
732,747
15,476
580,840
436
570
45,894,966
100,645,115
2,706,048
9,508,345
-13.5%
2.2%
2,328,219
8,376,531
377,829
1,131,814
5.1%
8.3%
0.8%
1.1%
5.9%
9.4%
-0.7%
0.3%
$40.54
$49.89
$38.97
$41.95
$40.71
$49.39
2.2%
15.4%
1,680,721
4,794,790
-24.2%
-3.1%
85,631
(302,667)
(120,522)
(468,339)
Y-o-Y
% Change
Direct
Available
Space
Sublease
Available
Space
Direct
Vacancy
Rate
Sublease
Vacancy
Rate
Total
Vacancy
Rate
Y-o-Y
% Pt. Change
Direct
Wtd. Avg.
Rental Rate
Sublease
Wtd. Avg.
Rental Rate
Total
Wtd. Avg.
Rental Rate
Y-o-Y
% Change
Year-to-Date
Leasing
Activity
Y-o-Y
% Change
Year-to-Date
Direct Absorption
Rate
Year-to-Date
Total Absorption
Rate
(1,523,570)
(29,065)
Submarket
Number of
Buildings
Inventory
Total
Available
Space
Midtown
800
150
242,673,681
15,815,466
27,598,728
752,437
8.9%
-6.5%
22,438,306
596,226
5,160,422
156,211
9.2%
3.8%
2.1%
1.0%
11.4%
4.8%
0.9%
-0.3%
$69.53
$39.71
$59.69
$28.08
$68.41
$39.01
3.0%
4.2%
11,414,325
423,373
17.6%
-29.2%
(374,077)
74,135
Midtown South
431
214
65,289,027
20,156,303
4,979,786
1,092,517
16.5%
-35.3%
4,246,891
895,908
732,895
196,609
6.5%
4.4%
1.1%
1.0%
7.6%
5.4%
1.1%
-2.5%
$61.26
$46.18
$51.57
$47.69
$60.34
$46.29
22.8%
5.3%
2,743,402
790,180
-12.0%
-11.4%
(766,678)
2,054
(716,948)
(106,933)
Downtown
175
72
84,856,334
9,923,197
9,209,990
861,094
16.0%
35.4%
8,183,495
836,085
1,026,495
25,009
9.6%
8.4%
1.2%
0.3%
10.9%
8.7%
1.5%
2.5%
$46.79
$35.10
$31.31
$38.50
$46.00
$35.11
15.5%
10.4%
4,269,513
467,168
7.4%
-35.9%
(1,555,361)
9,442
(1,795,363)
15,476
1406
436
392,819,042
45,894,966
41,788,504
2,706,048
11.3%
-13.5%
34,868,692
2,328,219
6,919,812
377,829
8.9%
5.1%
1.8%
0.8%
10.6%
5.9%
1.1%
-0.7%
$63.19
$40.54
$54.62
$38.97
$62.51
$40.71
6.3%
2.2%
18,427,240
1,680,721
9.7%
-24.2%
(2,696,116)
85,631
(4,035,881)
(120,522)
Y-o-Y
% Change
Direct
Available
Space
Sublease
Wtd. Avg.
Rental Rate
Total
Wtd. Avg.
to-date
Rental
Rate
Totals
7.6%
Submarket
Midtown
Midtown South
Downtown
Totals
Total
: Though the vacancy
rate
Available
Number of
in Midtown
South
is up more
than 1
Space
Buildings
Inventory
22,438,306
4,246,891
8,183,495
34,868,692
10.6%
Sublease
Direct
: The Vacancy
overall
Available
vacancy
rate in Manhattan
Space
Rate
Sublease
Vacancy
Rate
2.1%
1.1%
1.2%
1.8%
$60.34
Total
Y-o-Y
:
Vacancy
% Pt. Change
Rate Midtown South
Direct
Rents
in
Wtd. Avg.
continue
Rental Rate
to push higher, up
0.9% year over
$69.53
percent
1.1%
$61.26
year overall
to $60.34
10.9%
1.5%
$46.79
per square foot. The
South market
10.6%Midtown 1.1%
$63.19
continues to tighten, and
rents continue to be very
high, Mr. Noland noted.
11.4%22.8
7.6%
$59.69
$51.57
$31.31
$54.62
18,427,240
Y-o-Y
Year-to-Date
Y-o-Y
: Overall
year- % Change
% Change
Leasing
leasingactivity inActivity
Manhattan
Year-to-Date
Direct Absorption
Rate
Year-to-Date
Total Absorption
Rate
(374,077)
(1,523,570)
(766,678)
(716,948)
(1,555,361)
(1,795,363)
(2,696,116)
(4,035,881)