MARKETVIEW SNAPSHOT
Midtown Manhattan Office, May 2020
Asking rents remain stable despite faltering leasing activity
Figure 1: Midtown Market Activity Apr. 2020 Mar. 2020 Apr. 2019 YTD 2019 YTD 2020 Leasing Activity 0.40 MSF 0.85 MSF 1.85 MSF 5.77 MSF 4.50 MSF Renewals 0.28 MSF 0.22 MSF 0.48 MSF 1.47 MSF 1.56 MSF Absorption (0.11) MSF (0.25) MSF 0.20 MSF (1.22) MSF (1.27) MSF Availability Rate 11.8% 11.8% 10.7% Vacancy Rate 8.0% 7.9% 7.6% Average Asking Rent $87.77 PSF $87.00 PSF $88.20 PSF Taking Rent Index 92.8% 93.2% 94.0%
Source: CBRE Research, May 2020.
MARKET HIGHLIGHTS • Monthly leasing activity totaled 405,000 sq. ft., 72% below the five-year monthly average of 1.43 million sq. ft. • Year-to-date leasing activity was down 22% from the same period last year. • Renewals totaled 277,000 sq. ft. in April, bringing the year-to-date total to 1.56 million sq. ft. • The availability rate was flat month-over-month but up 110 basis points (bps) year-over-year. • Net absorption was negative 109,000 sq. ft. in April, bringing the year-to-date total to negative 1.27 million sq. ft. • The average asking rent was essentially flat both month-over-month and year-over-year. • Sublease availability was 2.5%, with an average asking rent of $66.63 per sq. ft., up 18% year-over-year.
Figure 2: Top Lease Transactions Size (Sq. Ft.) Tenant Address 55,877(R) Bank of America Corporation 1540 Broadway 50,196(RE) Owl Rock Capital Partners LLC 399 Park Avenue 40,907(R) iStar Financial 1114 Avenue of the Americas 27,285(R) HQ Global Workplaces, Inc. 100 Park Avenue 27,111 Pearl Cohen Zedek Latzer, LLP 7 Times Square Tower Source: CBRE Research, May 2020. (R) Renewal (E) Expansion (RE) Renewal and Expansion
MAJOR NEW AVAILABILITIES • 332,000 sq. ft. of direct space at 277 Park Avenue* • 51,000 sq. ft. of direct space at 50 Rockefeller Plaza • 27,000 sq. ft. of direct space at 260 Madison Avenue • 25,000 sq. ft. of direct space at 1411 Broadway • 25,000 sq. ft. of Imperial Capital sublet space at 277 Park Avenue * This space was already on the market, but has now fallen within 12 months of tenant possession and therefore was added to statistics.
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© 2020 CBRE, Inc. This Snapshot reflects market activity through April 30, 2020. Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.