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Cresa New York
450 Lexington Avenue
32nd Floor
New York, NY 10017
212.758.3131 tel
212.980.1977 fax
Email
Map/Directions

Contacts

Mark Jaccom
President and Managing Principal
Email
212.758.3131 tel

New York

  • Midtown North 1Q 2015

    Class A

    Supply
    195.4 MMSF
    Vacancy
    8.4%
    Absorption
    -586,200 SF
    Avg. Lease Rate
    $76.33
  • Midtown North 1Q 2015

    Class B

    Supply
    41.4 MMSF
    Vacancy
    4.5%
    Absorption
    -53,000 SF
    Avg. Lease Rate
    $57.53
  • Midtown South 1Q 2015

    Class A

    Supply
    41.4 MMSF
    Vacancy
    5.5%
    Absorption
    0 SF
    Avg. Lease Rate
    $69.65
  • Midtown South 1Q 2015

    Class B

    Supply
    88.9 MMSF
    Vacancy
    6.7%
    Absorption
    -89,000 SF
    Avg. Lease Rate
    $61.15
  • Downtown 1Q 2015

    Class A

    Supply
    86.9 MMSF
    Vacancy
    13.3%
    Absorption
    -1,130,000 SF
    Avg. Lease Rate
    $59.11
  • Downtown 1Q 2015

    Class B

    Supply
    27.9 MMSF
    Vacancy
    6.4%
    Absorption
    -83,700 SF
    Avg. Lease Rate
    $47.93

Cresa's New York City Office tracks local real estate market statistics in the five boroughs of New York City: Manhattan, Brooklyn, Queens, the Bronx and Staten Island. The Office's primary focus is in the Manhattan submarkets of Midtown North, Midtown South and Downtown.

The City is home to perhaps the most broadly diversified array of companies operating within any of the world’s largest metropolitan areas. Manhattan remains the undisputed international hub for the financial services industry and, in addition, it is home to many of the world’s leading law firms and other professional services firms. 

The City continues to attract an ever-widening range of creative services firms, including internet-based/technology companies, media organizations, publishing and communications entities. Such fast-growth organizations as Amazon, Google, Twitter, Gilt, Huffingtonpost.com and Facebook continue to expand here.

Cresa is active within the Manhattan office market on a daily basis and our professionals are knowledgeable about all significant current trends and market conditions.  We offer unparalleled experience in addressing the needs of the business community - - whether finding the perfect space, negotiating favorable lease terms or arranging the optimal space layout, our team offers a range of invaluable resources to help tenants find the best solutions to their occupancy needs.


People

Jamie Addeo Senior Advisor 212.687.4136
Christopher Aquilino Advisor 212.687.4537
Helen Ball Business Manager 212.687.0534
Bruce Beegel Advisor 212.687.4329
Peter Brestovan Advisor 212.687.4361
Jonathan Buksbaum Vice President 212.758.3131
John Cahill Principal 212.687.4518
Andrew M. Chase Advisor 212.687.4390
Howard Cross Principal 212.687.4159
Justin Halpern Principal 212.687.4164
S. Kent Holliday, AIA Principal, Consulting Services 212.687.1939
Mark Jaccom President and Managing Principal 212.758.3131
Harold D. Kahn Consulting Services 212.687.4127
Keith Keppler Senior Vice President, Consulting Services 212.687.1954
Kathryn Kerpchar Vice President, Project Management 917.417.4526
Peter Kozel, Ph.D. Principal, Consulting Services 212.687.0629
Samuel Maldonado Research Director, Consulting Services 212.687.4371
Sam Mann Advisor 212.687.4365
Lisa Matos Administrative Assistant 212.687.0598
Mike McKenna Senior Advisor 212.687.4183
Dolores Minardi Senior Advisor 212.687.4176
Stephen Naidu Advisor 212.687.4309
Jonathan Ortiz, CPA Vice President, Consulting Services 212.687.1372
Martha Pellegrino Senior Vice President, Project Management 212.687.1695
Nelcol Philip Controller 212.687.0652
James A. Pirot Principal, Project Management 212.687.1048
Richard Plehn Senior Advisor 212.687.1723
Jane Roundell Principal 212.687.4195
Stephen Santoro Principal 212.687.4240
Robert J. Sattler Advisor 212.687.0738
Elyse Schindler-Candella, Esq. Senior Advisor 212.687.4150
Barbara Singleton Receptionist 212.758.3131
Michael Smith Senior Advisor 212.687.4243
Luca Smoleac Research Associate 212.687.1903
Barry C. Spagna Advisor 212.687.4294
Robert P. Stella Principal 212.687.4306
Eric Thomas Principal 212.687.4314
Mark Toubin Senior Advisor 212.687.4369
W. Clayton Trauernicht Vice President 212.687.4572
Vincent Tuminelli Principal 212.687.4575
Ed Wartels Principal 212.687.4319
Sander Williams Vice President, Project Management 212.687.3131
Geoffrey E. Wowk Vice President, Consulting Services 212.687.1629

News

Subleases & Sales

Property Available Space Rental Rate
Sublease: 2500 Halsey Street
Bronx, NY
74,060 RSF Upon Request

Project Management



The build-out of your new workspace is not something you want to undertake alone. Our project management team is your assurance that it will happen in a timely, cost-effective way. 

We are true tenant advocates — we understand that the interests of landlords and developers are not at all the same as yours. We can run the entire project. We’ll advise on all issues of programming, feasibility, and other challenges that may affect the build-out. We’ll negotiate with the landlord, hire the architects, engineers, and any other consultants, looking out for your interests at every turn. And we’ll make sure you get the working environment you pay for — and that your people expect — by taking complete control of the following:

  • Budget — We take charge of the spending for your project, advising you of any issues and pointing out possible savings
  • Schedule — We oversee the construction schedule, informing you of key dates, making sure you have time to plan your move without disruption
  • Plans — We create a rough outline of how your space will be built out, then we select the architect to draw it up formally
  • Permits — We take care of obtaining any permits necessary for the construction of your space
  • Vendor Selection — We oversee the hiring and supervision of: designers, contractors, voice/data suppliers, and other suppliers
  • Coordinate Installs — We supervise the installation of carpet, paint, trim, wiring, lighting, system furniture, and other items required in a working office
  • Relocation Management — We can implement your entire move — hiring the mover, packing and unpacking, setting up computers, etc. — so your people can keep working with as few distractions as possible


Contact:

James A. Pirot
Principal, Project Management
212.687.1048
JPirot@cresa.com

Martha Pellegrino
Senior Vice President, Project Management

212.687.1695
MPellegrino@cresa.com

Why Cresa?

We think of real estate as a business tool — one that goes beyond just your operational needs to help you enhance your image, attract top talent, and drive profitability.

Accordingly, our approach to real estate is entirely strategic. Before we think about your space requirements, we think about the business needs behind them. Only by understanding those needs can we address them in a meaningful, goal-oriented way.

We advise commercial tenants exclusively — no landlords, no developers — so we can be completely objective and conflict-free. By concentrating single-mindedly on tenant issues, we gain both the perspective and the experience to level the playing field in landlord-tenant relations. We are, in every sense, the tenant’s advantage.

This unique focus is supported by a complete array of integrated services that cover every stage of the real estate life cycle, from the planning to the transaction to the implementation. These services drive the tactical execution behind our strategic thinking, and they lead directly to solutions that reduce costs, improve operations, and enhance the performance of your workforce.


1Q15 Manhattan Market Executive Summary

Net Absorption Slowed but Rents Marched Upward in The First Quarter of 2015

Demand for Space Held Steady
Manhattan’s overall occupancy statistics for the first quarter of 2015 were quite close to what we reported for 2014’s fourth quarter. For Class A space, the availability rate increased slightly to 12.2 percent from 12.1 percent in the fourth quarter. The vacancy rate also increased, rising to 9.3 percent from 8.9 percent in the last quarter of 2014. 

Changes in the availability of Class B space were even less significant. The overall Class B availability rate increased to 10.0 percent from 9.9 percent in the fourth quarter. The vacancy rate was up to 6.2 percent from 6.1 percent in the fourth quarter. 

The quarter’s overall occupancy levels for Manhattan portray a market where there is a relative balance between the supply of space and the demand for it. However, for the individual tenant looking for a particular type of space in a selected submarket, the reality can be substantially different from the perception conveyed by the averages. Major dichotomies exist among Manhattan’s various submarkets in the availability of truly competitive and relevant space alternatives. 

• Midtown North’s Class A availability rate declined to 11.7 percent from 11.9 percent in the fourth quarter of 2014 and the 2014 average of 12.3 percent. The progression over the last two years has been downward, with the availability rate at 13.6 percent two years ago. For the first quarter, the availability rate declined in the Plaza District and Grand Central submarkets but increased in the Times Square and Columbus Circle submarkets.

• Midtown South’s Class A availability rate fell to 7.0 percent in the first quarter from 9.0 percent in the fourth quarter. Its Class B availability rate was unchanged at 10.8 percent; but a substantial portion of that available space was in a few large buildings that do not satisfy tenants’ needs.

• Downtown’s Class A availability rate increased to 16.1 percent from 14.0 percent in the fourth quarter. This increase was driven in large part by financial sector tenants consolidating their operations and simply occupying less space. Its Class B availability rate declined to 8.5 percent from 9.2 percent in the fourth quarter, as tenants seek less expensive space.



Rent Performance
While occupancy levels across the various markets moved in a variety of directions; asking rents trended higher in all of the markets; although the pace did vary from market to market.  

Midtown North’s Class A average asking rent reached $76.33/sf, but there was considerable variability among its submarkets. Grand Central’s Class A average asking rent was $64.84/sf, which is up from $62.95/sf in the fourth quarter of 2014. The Plaza District’s asking rent increased to $88.36/sf from $86.63/sf in the fourth quarter. It is the case, moreover, that sizable chunks of space are in trophy buildings that have asking rents above $150/sf. The Class B average asking rent increased to $57.53/sf in the first quarter from $56.67/sf in the fourth quarter of 2014. Two years ago its average asking rent was $51.05/sf.

The average asking rent for the Midtown South market increased to $69.65/sf in the first quarter from $66.96/sf in the fourth quarter of 2014. In the first quarter of 2013, the average asking rent was $59.35/sf. Two-thirds of the available Class A space is in the Penn Plaza submarket, and the average rent there increased at a 15 percent annual rate in the first quarter. The Class B average rent increased to $61.15/sf from $60.18/sf in the fourth quarter and from $48.60/sf two years ago. In the Chelsea and Greenwich submarkets, deals in Class B space have been in the area of $80/sf.

Despite the increase in Downtown’s Class A availability, the average asking rent move higher in the first quarter to $59.11/sf from $58.10/sf in the fourth quarter of 2014. The movement in Downtown’s Class B rents over the last two years has been dramatic. In the first quarter of 2015, the average asking rent reached $47.93/sf, which is up from 33.74/sf two years ago; a 42 percent increase. 

The aggressive upward movements in Manhattan’s asking rents are largely the result of two factors.

• Tech sector employment has grown at a 4 to 6 percent annual rate, creating great demand pressure in many of Midtown South’s submarkets. Very strong growth in the health care and education sectors has created intense demand for space that can service those needs. In additional, growth in hedge and private equity funds has built the demand for trophy space. These rapidly growing sectors and the demand they create set the general tone for the property markets. 

• Investment sales of Manhattan properties at high prices cause landlords to push rents upward in an effort to justify the prices paid for the assets. We are in the midst of this testing of the market’s ability absorb those price rates



Looking Ahead
For the U.S. economy, the preliminary indicators point to a slow start for 2015. The broad range of forecasts for the first quarter of 2015 anticipates that the annualized growth rate will be less than 2 percent. The growth rate in the fourth quarter of 2014 was 2.2 percent; and for all of 2014, it averaged 2.4 percent. 

It was expected by the Federal Reserve and many private economic forecasters, that the economy would pick-up steam in the first quarter of 2015 and for the rest of the year. The opposite has occurred, with the result that interest rates have declined. The fact that interest rates have remained low combined with the threat of increases later in 2015, has stimulated investment sales activity in the real estate sector, and a continuation of historically high property valuations. Strong sales activity and escalating sales prices have an impact on asking rents and availability rates, especially as new landlords attempt to justify the high prices they paid.

Clearly, investors as well as business leaders in general are looking for clarification on the future pace of economic expansion.

Even though obtained from sources deemed reliable, no warranty or representation, expressed or implied, is made as to the accuracy of the information herein.

 

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