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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 4Q 2014

    Class A

    Supply
    195.7 MMSF
    Vacancy
    8.1%
    Absorption
    0.0 SF
    Avg. Lease Rate
    $75.05
  • Midtown North 4Q 2014

    Class B

    Supply
    28.9 MMSF
    Vacancy
    4.3%
    Absorption
    289,000 SF
    Avg. Lease Rate
    $56.67
  • Midtown South 4Q 2014

    Class A

    Supply
    43.1 MMSF
    Vacancy
    5.5%
    Absorption
    689,000 SF
    Avg. Lease Rate
    $66.96
  • Midtown South 4Q 2014

    Class B

    Supply
    92.5 MMSF
    Vacancy
    6.6%
    Absorption
    648,000 SF
    Avg. Lease Rate
    $60.18
  • Downtown 4Q 2014

    Class A

    Supply
    86.9 MMSF
    Vacancy
    12.0%
    Absorption
    609,000 SF
    Avg. Lease Rate
    $58.10
  • Downtown 4Q 2014

    Class B

    Supply
    29.1 MMSF
    Vacancy
    6.1%
    Absorption
    -116,191 SF
    Avg. Lease Rate
    $46.69

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
John Cahill Principal 212.687.4518
Andrew M. Chase Advisor 212.687.4390
Kira Cromer Executive Assistant 212.687.0598
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 Managing Principal, Operations & Administration 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
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
Michael Plavin Advisor 212.687.4192
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
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.


4Q14 Manhattan Market Executive Summary

Manhattan’s Office Market Strikes a Strong Finale to 2014

The increase in volatility and uncertainty in the economy and financial markets continued into the fourth quarter of 2014. The major macro event in the fourth quarter and likely for all of 2014 was the collapse in the price of oil. In the short run, this fall in oil prices is positive for economic growth; but longer term the net positive may be smaller. Despite the murkiness of the outlook, consumer and business sentiment tended to improve in the fourth quarter. These trends helped Manhattan’s office property market. 

Both asking rents and occupancy levels moved higher in the Manhattan office market during 2014’s final quarter.

Manhattan’s Class A availability rate declined to 12.1 percent from 12.4 percent in the third quarter and 12.2 percent in the second quarter. With a tighter supply/demand balance and improving sentiment, asking rents generally increased.

The overall Manhattan Class A asking rent increased to $68.98/sf from $68.00/sf in the third quarter.The overall Manhattan Class B availability rate reached 9.9 percent, down from 10.3 percent in the third quarter. Both Midtown North and Midtown South experienced substantial declines from their third quarter levels. The average Class B rent jumped to $57.23/sf from $55.82/sf in the third quarter of 2014.

The pace of leasing slipped again in the fourth quarter of 2014; totaling 6.5 million square feet. For the Midtown South market, the levels in the third and fourth quarters were virtually identical. The pace was down from the third quarter in both the Downtown and Midtown North markets. 


Peering into 2015

The script for 2015 contains numerous events that are likely to have a hard-to-quantify but potentially major impact on the strength of business activity and as a result the demand for office space.

  • The Federal Reserve has made it clear that it has programmed an increase in interest rates for 2015. The demand for office space would suffer, if the rise in interest rates preceded the actual appearance of stronger and broader economic growth.

  • The value of the U.S. dollar has push upward; making it more expensive for people outside the U.S. to purchase U.S. based assets, including office properties. However, the U.S. is the safe harbor for investments.

  • The economies outside the U.S. still seem to be weakening; but additional stimulative policies are on the horizon. 

In short, it appears that 2015 will likely not be a breakout year in terms of the pace of economic growth. Office-using employment in the New York market will likely grow at an annual rate in the range of 1.00 percent to 1.50 percent during 2015; down from the 1.75 percent to 2.25 percent range sustained over the last three years.


Roundup of Market Performance

Midtown North’s overall availability rate remained at 11.9 percent in the fourth quarter, unchanged from the third quarter’s level and down from 12.6 percent in the fourth quarter of 2013. The average Class A rent for the Midtown North market was $75.05/sf, up from $74.81/sf in the third quarter. The Class B rent averaged $56.67/sf, up from $55.45/sf in the third quarter

In the Grand Central submarket, the Class A availability rate declined to 14.5 percent from 15.4 percent in the third quarter. The average Class A asking rent in the Grand Central market increased in the fourth quarter to $62.95/sf from the third quarter’s $61.72/sf, but it is still well below the Midtown North average and equal to the Midtown South’s Penn Plaza submarket average. The average asking rent for Class A space in the Plaza District was $86.63/sf and was the highest average asking rent in the Midtown North market. 

Midtown South’s Class A average asking rent reached $66.96/sf in the fourth quarter; and this number is driven largely by what is happening in the Penn Plaza submarket where rents moved sharply higher in the fourth quarter, with an average of $62.96/sf in the fourth quarter.

Rents were also up in Midtown South’s Class B sector, averaging $60.18/sf in the fourth quarter versus $58.52/sf in the third. The availability rate declined from 11.5 percent in the third quarter to 10.8 percent in the fourth.

Midtown South rents in 2014 were well above the previous peak level reached in 2008.

Downtown’s Class A availability rate declined to 14.0 percent from 14.7 percent in the third quarter.  The average rent reached $58.10/sf from 57.50/sf in the third quarter. Much of the available space in this sector is concentrated in a relatively small number of buildings. With much of the Brookfield Place space leased, Class A rents are likely to increase significantly in 2015, assuming there is no major economic reversal.


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

Click Here to Read the Full Fourth Quarter 2014 Report


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