(The following is a reformatted version of a press release
issued by CBRE Group, Inc. and received via electronic mail. The
release was confirmed by the sender.)
CBRE ISSUES JANUARY 2013 MANHATTAN MARKETVIEW SNAPSHOT
CBRE’s Report Finds Overall Manhattan Leasing Activity Up
Strongly in December 2012, but Down 20% Year-Over-Year from 2011
Average Asking Rents Rose Across All Three Markets on a Monthly
and Yearly Basis
New York, NY - January 10, 2013--
Manhattan logged 1.98 million square feet of leasing activity in
December, 55% above the 1.28 million sq. ft. recorded in
November, but 22% below December 2011’s 2.53 million sq. ft. of
activity. Full-year leasing for Manhattan totaled 22.32 million
sq. ft., 20% below 2011’s full-year total of 27.88 million sq.
ft. Manhattan experienced 160,000 sq. ft. of positive absorption
in December, resulting in a slight improvement to the full-year
net absorption level, which ended the year at negative 5.87
million sq. ft. Notably, all three Manhattan submarkets
registered negative absorption in 2012. By comparison, Manhattan
logged 6.28 million sq. ft. of positive absorption in 2011.
The Manhattan-wide availability rate, at 11.9%, was unchanged
from the previous month, but was up 120 basis points year-over-year. At year’s end, Manhattan’s average asking rent stood at
$58.84 per sq. ft., up $0.85, or 1%, from the previous month,
and $5.73, or 11%, from 2011’s year-end average asking rent of
$53.11 per sq. ft.
Among the report’s highlights:
Midtown - Saw 1.35 million sq. ft. of leasing in December,
topping its five-year monthly average of 1.16 million sq. ft. by
16%. Full-year leasing activity totaled 12.84 million sq. ft.,
23% short of the previous year’s full-year total of 16.77
million sq. ft. December’s above-average activity offset new
availabilities added to the market, resulting in 760,000 sq. ft.
of positive absorption for the month. However, total absorption
for the year remained in negative territory, at negative 2.44
million sq. ft. By comparison, Midtown saw 1.55 million sq. ft.
of positive absorption in 2011. The Midtown availability rate
ended the year at 12.0%. Midtown’s average asking rent stood at
$67.80 per sq. ft. at year’s end, up $0.97, or 1%, from the
previous month, and $5.37, or 9%, year-over-year.
Midtown South - Leasing activity totaled 280,000 sq. ft. in
December, 13% below the market’s five-year monthly average of
320,000 sq. ft. On an annual basis, the market logged another
blockbuster year of leasing, with 2012’s 5.00 million sq. ft. of
total activity falling just shy of the previous year’s record-setting level of 5.25 million sq. ft. The month’s 180,000 sq.
ft. of positive absorption was largely due to space withdrawals
and a relatively low level of new availabilities. The 2012 full-year absorption level stood at negative 190,000 sq. ft. The
availability rate ended 2012 at 8.6%. The average asking rent
rose by $0.86, or 2%, during December to a new all-time high of
$55.14 per sq. ft. Year-over-year, the average asking rent was
up $9.80, or 22%.
Downtown - Recorded 350,000 sq. ft. of leasing in December, 6%
above its five-year monthly average of 330,000 sq. ft. Full-year
leasing activity for 2012 totaled 4.48 million sq. ft., trailing
2011’s robust level of 5.86 million sq. ft. by 24%. A 1.04
million-sq.-ft. block of new direct space at 4 World Trade
Center, currently under construction, fell within 12 months of
tenant possession in December, fueling the month’s 780,000 sq.
ft. of negative absorption and pushing the full-year net
absorption level to negative 3.23 million sq. ft. By comparison,
Downtown logged 2.54 million sq. ft. of positive absorption in
2011. The 4 WTC space also drove a 90-basis-point monthly
increase in Downtown’s availability rate, which ended the year
at 14.2%. With some 4 WTC space priced above the previous
month’s average asking rent, Downtown’s average asking rent rose
by $1.47, or 3%, during the month to $46.85 per sq. ft. For the
year, the average asking rent increased $7.55, or 19%.
Capital Markets - East End Capital and GreenOak Real Estate
purchased 321 West 44th Street from Kushner Companies for $92.5
million ($406 per sq. ft.).
American Realty Capital New York Recovery REIT purchased 229
West 36th Street from Real Estate Capital Partners for $64.9
million ($461 per sq. ft.).
RFR Realty, East End Capital and GreenOak Real Estate purchased
285 Madison Avenue from WPP Group (Young & Rubicam) for $189.25
million ($357 per sq. ft.).
Princeton International Properties purchased 104 West 40th
Street from Savanna for $105 million ($499 per sq. ft.).
Quantum Global and LaSalle Investment Management purchased a
49.5% interest in 521 Fifth Avenue from SL Green for $156.1
million ($644 per sq. ft.). The full valuation of the building
is approximately $315.4 million.
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