New York, NY -- (SBWIRE) -- 11/06/2018 -- Manhattan Office:
Strong Manhattan office leasing demand decreased supply by 820,000 RSF despite new construction coming along, an impressive feat. In the first nine months, more than 29 million square feet worth of new office leases and renewals were completed.
Office leasing in Midtown has hit a 12-year high. During the third quarter specifically, there were 4.4 million square feet worth of deals signed. The average asking rent was $78.41 per square foot.
The tech sector leased 1 million square feet for the ninth consecutive year. Over the past two years, the tech center increased hiring by 12.4%.
Asking rents for Midtown South office were $83.14 per square foot. Class A in Midtown South have asking rents hitting $94.61 per square foot, compared to $83.38 per square foot in Midtown.
Co-working tenants inked 12% of the nearly 25 million square feet worth of leases signed in Manhattan through the first three quarters of the year, up from 4% during the same time period last year. Wework is now Manhattan's largest private office tenant with a portfolio totaling 5.3 million square feet.
In Midtown South, co-working companies accounted for 45% of the 1 million square feet leased during the third quarter, overtaking the 23% of leases signed by (TAMI) technology, advertising, media and information-services.
Manhattan office sales more than quadrupled and FiDi home prices dropped 51% in the third quarter.
Manhattan Office Sales:
Office sales in Manhattan totaled $4.4 billion in the third quarter, more than four times the $990 million total from the same period last year. Prices also rose 11% year over year, settling at $908 per square feet. The most expensive deal was Brookfield Property Partners' acquisition of leasehold on 666 Fifth Avenue, which had a price of $1.3 billion.
New York's multifamily market continued to rebound from a moribund 2017 with a strong third quarter, seeing year-over-year gains in dollar volume, transaction volume and building volume.
The city saw 115 multifamily deals across 186 buildings worth $2.23 billion overall. This marked a 40% increase in dollar volume, a 12% increase in transaction volume and a 22% increase in building volume year over year.
Manhattan drove the market by dollar volume with $1.12 billion in sales, and a 69% increase from last year's third quarter. Transaction volume stayed flat at 26 deals, while building volume increased by 32% to hit 41.
September's top 10 retail leasing deals comprised 98,300 square feet, down 21,600 square feet from August's total of 119,900 square feet.
Manhattan Office Rent Vacancy
Manhattan Retail Rent Vacancy
For the latest market research on New York City commercial real estate, contact Stephen Sunderland. Optimal Spaces releases a monthly analysis of the market, including detailed statistics and graphs.
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