Archive for August, 2011
The Manhattan office market continued on its road to recovery in Q2 with the overall vacancy rate falling to 12.7%, a slight 10 basis-point decline from the previous quarter, and asking rents rising to $48.64, a 1.9% increase from Q1.
Leasing activity was dominated by financial services and media companies, which accounted for 16 of the 20 largest leases completed during Q2. Two blockbuster deals were completed in the quarter, with Conde Nast signing a lease for 1 million SF to anchor the under-construction 1 World Trade Center, and Nomura moving from Downtown to 900,000 SF at 825 Eighth Avenue in Midtown.
Warehouse demand appears to be gaining velocity with some caveats. While the demand varies from market to market, demand is typically for less space. The static nature of the overall demand points in a positive direction for the marketplace. Tenants are taking care to secure data on landlords and lenders to ensure that they are well capitalized and can provide for occupancy standards. Smaller industrial assets are trading fairly steady within the owner-occupier segmentation. Investment trading continues as well but based upon more stringent metrics and return requirements.