CB RICHARD ELLIS

Midtown South Manhattan Snapshot

www.cbre.com/research April 2011

Market Activity
Mar ’11 Feb ’11 Mar ’10 YTD ’11 YTD ’10
Leasing Activity 0.55 MSF 0.25 MSF 0.27 MSF 1.12 MSF 0.99 MSF
Absorption 0.16 MSF 0.18 MSF 0.38 MSF 0.32 MSF 0.36 MSF
Availability Rate 11.5% 11.7% 14.4%
Vacancy Rate 7.3% 7.6% 9.3%
Average Asking Rent $42.72 PSF $42.57 PSF $41.60 PSF
Taking Rent Index 88.7% 86.6% 81.6%

Hot Topics

Definitions • March’s robust leasing activity eclipsed the five-year monthly average of 290,000 sq. ft. by 90%.
• Through the first three months of the year, leasing in Midtown South is outpacing 2010 activity by
Availability 13%.
Space that is being actively marketed and • Strong leasing offset the new availabilities that came online during the month, fueling 160,000 sq.
is available for tenant build-out within 12 ft. of positive absorption in March.
months. Includes space available for
sublease as well as space in buildings • The overall availability rate edged down 0.2 points in March, reflecting a drop in direct availability;
under construction. the sublease availability rate inched up 0.1 point, to 1.8%, during the month.
• The average asking rent rose $0.15 per sq. ft. due to the pricing of available space above the
Asking Rent average and the leasing and withdrawal of lower-priced space.
Asking gross “face” rents (excluding all
concessions and tenant electric).
Top Lease Transactions
Leasing Activity
Size (Sq. Ft.) Tenant Address
Total amount of square feet leased within
a specified period of time, including pre- 367,584* NYU Langone Medical Center 1 Park Avenue
leasing and purchases of space for 45,140 Fred Alger & Company, Inc. 360 Park Avenue South
occupancy and excluding renewals.
32,340* Doctors Without Borders 333 Seventh Avenue
Net Absorption
The change in the amount of occupied 30,738 Cowtan & Tout Inc. 205 Hudson Street
square feet within a specified period of 19,000** MultiPlan, Inc. 111 Fifth Avenue
time.
* Renewal & Expansion
Taking Rent ** Renewal
Actual initial base rent in a lease Major New Availabilities
agreement (excluding all concessions and • 61,000 sq. ft. of Viacom, Inc. sublease space at 345 Hudson Street
tenant electric).
• 32,000 sq. ft. of direct space at 475 Park Avenue South
Taking Rent Index • 28,000 sq. ft. of direct space at 114 West 26th Street
Initial taking rents (actual initial base rent • 27,000 sq. ft. of sublease space at 225 Park Avenue South
excluding all concessions and tenant
electric) as a percentage of asking rents; • 24,000 sq. ft. of sublease space at 21 Penn Plaza
index represents a six-month rolling
weighted average (for size and month). Capital Markets Activity
Vacancy • An entity affiliated with Vornado Realty Trust purchased a 95% fee interest in 1 Park Avenue from
Unoccupied space available for lease. Murray Hill Properties. The purchase price, as reported by Vornado Realty Trust, was approximately
$374 million ($422 per sq. ft.), which includes $137 million in cash and a 95% interest in a new
$250 million, five-year mortgage.

For more information regarding
MarketView, please contact:
Kurt Lindsey, Senior Director
CB Richard Ellis, 200 Park Avenue
New York, New York 10166
T. 212.984.8216 F. 212.984.8207
kurt.lindsey@cbre.com
This Snapshot reflects market activity through March 31, 2011. Unless otherwise agreed to in writing by CB Richard Ellis, this information may not
be re-distributed in whole or in part to any third party.
© 2011 CB Richard Ellis, Inc. CB Richard Ellis statistics contained herein may represent a different data set than that used to
generate National Vacancy and Availability Index statistics published by CB Richard Ellis’ Corporate Communications
Department or CB Richard Ellis’ research and econometric forecasting unit, CB Richard Ellis—Econometric Advisors. Information
herein has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make
no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and
completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current
or future performance of the market. This information is designed exclusively for use by CB Richard Ellis clients, and cannot be
reproduced without prior written permission of CB Richard Ellis.