New York, NY -- (SBWIRE) -- 12/05/2018 -- Overview:
Amazon coming to Long Island City and bringing 25,000 jobs which will increase office demand. Google and Facebook are also on the hunt for additional office space. New construction came online and vacancies fell slightly. The co-working/shared/executive offices are also on an expansion hunt so new office supply should be readily absorbed.
Retail continues to be quiet with main activity being renewals of existing tenants. Only a few nationals are expanding in New York City, Target. Prices still need to fall so that spaces will rent. The big question is when.
Higher interest rates have had more of an affect on residential than commercial, although the question remains when will rates drive cap rates and therefore sales prices lower.
New York Market Overview
Manhattan office leasing activity surged by nearly 80% from the same time last year, as 2018 continues on its path toward a new post-recession record.
Office leasing activity, including both new leases and renewals, totaled around 3.97 million square feet. That was 76.7% above last year's 2017's. The largest lease was the City of New York's 420,000-square-foot renewal at 90 Church Street. The Downtown sub-market's largest deal of the year.
The Midtown office market is the most active since 2006, with a total of 13.9 million square feet leased . Of that total, 4.4 million square feet were added in the third quarter, the sixth consecutive quarter to surpass 4 million square feet leased.
Asking rents in Midtown stood at $74.41 per square foot, up 2% from the previous quarter, but down 3% from last year. In Midtown South, asking rents were at $77.15 per square foot, down 2% from the previous quarter, but up 7% year-over-year. .
Fifth Avenue ranked as the second most expensive retail corridor in the world. Fifth Avenue between 49th and 60th Street ranked as the second most expensive retail corridor. In the second quarter, the area posted average rents of $2,250 per square foot.
The top 11 retail deals made public totaled over 353,000 square feet, well above the 98,300 square feet seen the prior month but most of the activity was renewals.
For the latest market research on New York City commercial real estate, contact Stephen Sunderland. Optimal Spaces releases a monthly analysis of the market, including detailed statistics and graphs.
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Optimal Spaces is an industry leader Tenant Representative firm helping clients looking for office, retail and industrial real estate in New York City. We solely represent our client's interest, unlike most other brokerage firms who represent the landlord's interest. Optimal Spaces offers strategic advice and execution for commercial real estate, corporate brokerage, market research and consulting. Optimal Spaces' brokers are all experts each with a minimum of ten years in the fields of retail and office. For more information go to our website www.optimalspaces.com.