NEW YORK – Cassidy Turley, a leading commercial real estate services provider in the U.S., today released their May Manhattan Market Report, which shows an upswing with 355,757 square feet of positive absorption in April leading to a drop in the availability rate to 11.7 percent. Interestingly, the largest decline in available space came from the Class A market, which dropped to 12.4 percent. As a reflection, Midtown is experiencing a healthy resurgence, while Midtown South faltered slightly with Downtown remaining steady.
April was a great month for Midtown, posting 899,756 square feet of positive absorption, most of which can be attributed to significant leases that closed after the first quarter. The increase in activity resulted in the availability rate dropping to 11.8 percent, down 40 basis points from March. Class B asking rents continued to soar, up $1.01 to $52.69 per square foot, while Class A asking rents crept up only $0.06 per square foot to $77.79.
Midtown South experienced a few missteps in April as the availability rate jumped 50 basis points to 9.5 percent – the highest it has been in 17 months. Negative absorption of 397,200 square feet is a result of space added to the Flatiron/Union Square submarket at 114 Fifth Avenue. Despite an increase in availability, asking rents in Class B soared to $59.79 per square foot, up $2.64, while Class A asking rents increased $0.83 to $68.04 per square foot.
The good news for Downtown is demand remains high as tenants continue to seek value even though availability inched up in April by 10 basis points to 13.5 percent. Class A asking rents were up $0.81 per square foot to $53.42 and Class B minimally edged up $0.03 to $36.08 per square foot, interestingly placing Downtown as the sole market where Class A asking rents increased more than Class B.
“Positive activity in Midtown demonstrates the resilience of the market while Midtown South is naturally experiencing a fluctuation due to new product,” comments Peter Hennessy, President, New York Tri-State Region Cassidy Turley. “Our clients benefit from our intimate understanding of the progression of the market and the impact to their long- and short-term real estate goals.”
About Cassidy Turley
Cassidy Turley is a leading commercial real estate services provider with more than 3,800 professionals in more than 60 offices nationwide. The company represents a wide range of clients—from small businesses to Fortune 500 companies, from local non-profits to major institutions. The firm completed transactions valued at $22 billion in 2012, manages approximately 400 million square feet on behalf of institutional, corporate and private clients and supports more than 23,000 domestic corporate services locations. Cassidy Turley serves owners, investors and tenants with a full spectrum of integrated commercial real estate services—including capital markets, tenant representation, corporate services, project leasing, property management, project and development services, and research and consulting. Cassidy Turley enhances its global service delivery outside of North America through a partnership with GVA, giving clients access to commercial real estate professionals in 65 international markets. Please visit www.cassidyturley.com for more information about Cassidy Turley.