NEW YORK – Cassidy Turley, a leading commercial real estate services provider in the U.S., released their March Manhattan Market Report, showing the positive absorption gained in January was wiped out as 19 buildings placed 40,000 square feet or more of available space on the market, leading to 1.6 million square feet of negative absorption.
The report shows Midtown was hit the hardest, home to 10 out of the 19 buildings that dumped significant space, driving its availability up 40 basis points to 12.0 percent. Not surprisingly, Class A average asking rents dipped down $0.17 from January to $78.43 per square foot while Class B showed some resilience, up $0.35 per square foot to $50.34.
Despite an increase in availability to 9.2 percent, the demand in Midtown South remains high with Class B asking rents jumping an additional $1.15 per square foot to $57.04. The gap continues to widen as Midtown South Class B asking rents outperform Midtown by $6.70 per square foot.
Downtown suffered a minor setback, posting the highest availability rate since 2010 with a negative 517,860 square feet of absorption. Even with this concerning amount of space on the market, there are signs of hope as there are reports of many tenants with Downtown requirements ranging from 75,000 to 800,000 square feet. This will be especially important as the World Trade Center starts to come online at the end of 2013 and beginning of 2014.
“February’s numbers may have temporarily knocked a bit of the wind out of Manhattan’s sails, but even in sluggish submarkets glimmers of positive activity still remain. Understanding what impact these numbers really have gives us the tools to adapt to new market norms, stay completely ahead of the curve and ultimately better serve our clients,” commented Peter Hennessy, President Tri-State Region, Cassidy Turley.
About Cassidy Turley
Cassidy Turley is a leading commercial real estate services provider with more than 3,700 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 455 million square feet on behalf of institutional, corporate and private clients and supports more than 28,000 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 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.