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.
James A. Pirot
Principal, Project Management
Senior Vice President, Project Management
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.
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.
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.
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