Market Reports

Market Reports

Sharks Drive Demand for Cultural Construction in 2014

New York Aquarium (by Flickr user @e_chaya, used under a Creative Commons license).

Sharks drove much of the demand for cultural construction last year, according to a report released today by the New York Building Congress. In January 2014, The New York Aquarium broke ground on a $157.1 million, 57,000-square-foot facility called “Ocean Wonders: Sharks!,” according to a press release from the Wildlife Conservation Society. The project was the Read More

Market Reports

CBRE’s Q4 2014 Report Reaffirms Downtown’s Strength

CBRE Group today released its fourth-quarter 2014 statistics that included figures on the full-year 2014 Manhattan market, confirming what many in the New York real estate space had already known: Downtown’s resurgence is continuing unabated.

The report, issued at the company’s quarterly media breakfast at its 200 Park Avenue New York headquarters, shows that average asking rents Downtown reached an all-time high, with an average asking rent of $51.97 per square foot, a $5.50 increase from 2013. Read More

Market Reports

Southwest Brooklyn Booming, Too: Massey Knakal

Southwest Brooklyn

Investment sales in the southwest Brooklyn submarket are on pace to grow by 57 percent in terms of the number of buildings sold and 119 percent in dollar volume this year, according to a new monthly report set to be released this week by Massey Knakal Realty Services.

While neighborhoods like Sunset Park, Bensonhurst, Bay Ridge and eight other areas within southwest Brooklyn don’t receive the same hype as other areas such as Williamsburg or Downtown Brooklyn, the southwestern portion of the borough have accounted for 25 percent of the total buildings sold and 18 percent of the total sales figures for the borough, figures from the report say. Read More

Market Reports

Report: Ground Retail Rents Rise Along 13 of 17 Corridors

Manhattan Retail Rents

Median retail asking rents in Manhattan grew eight percent in the last six months and 12 percent over the past 12 months, according to the latest biannual retail report released this morning by the Real Estate Board of New York.

Median retail asks for all kinds of spaces now run for $104 per square foot versus $93 per square foot last fall, while average ground floor rents increased along 13 of 17 corridors tracked by the report. The stretch of Fifth Avenue between 49th and 59th Streets remained the most expensive retail area in Manhattan at a median asking rent of $3,500 per square foot and its closest competitor, a Times Square area that encompasses Broadway and Seventh Avenue between West 42nd and West 47th Streets, stayed in second place with a median asking rent of $2,225 per square foot, the report found. Read More

Market Reports

Midtown Leasing Slows With Availabilities Looming

Midtown numbers

Despite upticks in rent prices and decreased availability rates in both Class A and Class B properties in Midtown, the area moved less real estate in terms of raw square footage in the third quarter, according to the latest quarterly Manhattan office report released last week by Cresa New York.

The area between approximately 66th and 42nd Streets that the firm refers to as “Midtown North” totaled 3.8 million square feet of leasing transactions for the quarter, down from 4.9 million square feet in deals that were leased in the second quarter, 4.8 million square feet in the first quarter and 6.6 million square feet in the last quarter of 2013, the report says. Read More

Market Reports

Report: Construction Spending Nearing Pre-Recession Boom

New York Building Congress report

Construction spending in New York City will grow 17 percent this year to $32.9 billion from $28.2 billion in 2013, according to a report set to be released this morning by the New York Building Congress.

Despite reduced commercial construction investment this year due to the lack of a large-scale arena or live entertainment project, overall spending will grow to $35.3 billion in 2015 and $35.6 billion in 2016 and approach pre-recession levels, the report says. Read More

Market Reports

First Three Quarters Outpace Entire Previous Year in Midtown South

Midtown South Map

Office leasing activity this year in the tight Midtown South market has already bested last year’s total by more than 2 million square feet, according to a new quarterly report released this morning by CBRE.

Transactions like Google’s 178,065-square-foot lease at 85 10th Avenue, Yelp’s 152,232-square-foot deal at 11 Madison Avenue and Squarespace’s 93,517-square-foot lease at 225 Varick Street have netted a year-to-date total of 5.16 million square feet for 2014 after last year’s leasing totaled only 3.06 million square feet in the market composed of six neighborhoods bounded by Chelsea and Madison Square on the north and Soho and Hudson Square on the south, the report says. Read More

Market Reports

Reports: Downtown Vacancy Rates Fall While WTC Rises

Downtown Vacancy

Downtown Manhattan’s vacancy rates decreased by more than three percentage points in the last year despite large amounts of space for tenants at the World Trade Center, according to new quarterly data released by JLL and other market observers.

Downtown’s overall vacancy rate dropped from 13.7 percent to 10.6 percent between the third quarter of 2013 and the third quarter of this year, while downtown Class A vacancies plummeted from 15.5 percent to 11.2 percent over the same period, according to the JLL report. The trend reflects the area’s growing appeal to tenants from the technology, advertising, media and information sector who are moving from other neighborhoods, said John Wheeler, the director of JLL’s downtown office. Read More

Market Reports

Report: Investment Sales on Pace to Break Record

Sales totals

Almost 1,100 investment sales in the third quarter of the year netted a collective $11.3 billion in New York City, adding up to a total of $39.1 billion for the year so far as 2014’s sales totals eclipse those of 2013 with one quarter still remaining, according to a quarterly report released today by Massey Knakal Realty Services.

Even though this quarter’s volume and sales figures represent smaller sums than the last quarter’s, the breakneck pace would equal a robust $63 billion for the year if the sales keep up through the fourth quarter, said Massey Knakal Chairman Bob Knakal. Read More

Market Reports

Report: Manhattan Commercial Sales Dwarf Other Markets

Transwestern research graphic

Sales of Manhattan commercial buildings dwarfed those of other U.S. cities in the first seven months of the year, with Manhattan exceeding its nearest competitors in other large metropolitan markets by $6.1 billion in total sales volume and and $222 per square foot in sales price, according to a report released yesterday by Transwestern.

The survey with data the firm crunched alongside Real Capital Analytics found that Manhattan stayed atop the nation’s strongest urban core investment sales markets, producing 107 transactions for $11.2 billion in total sales volume at average rates of $770 per square foot in the first half of 2014 after its sales paced those of the country last year as well, said Transwestern researcher Palak Raval. Read More

Market Reports

Ridgewood, Queens, a.k.a. ‘Quooklyn,’ Sees Surge in Property Sales

Sales are way up in Ridgewood. (John Rambow/flickr)

The inevitable has happened: Ridgewood, Queens, that neighborhood that everyone has been watching tirelessly for signs that it is, indeed,  the next hot neighborhood, has seen a flurry of commercial real estate sales. In fact, this July, Ridgewood’s 11385 zipcode was the most active one for commercial property sales in the city, according to an Actovia analysis of Department of Finance records. The crown has, in recent memory, belonged mostly to Brooklyn zip codes and the county of Kings still outpaces Queens in terms of overall sales; in June, Brooklyn had 249 commercial property sales, nearly twice the 131 recorded in Queens (Manhattan had only 125). Read More

Market Reports

CBRE Report: East of Broadway a Value Play Downtown

Click to Enlarge: East of Broadway has more inventory than West of the thoroughfare. (CBRE)

Analysts at CBRE found that one of New York City’s most famous corridors divides the hot downtown commercial market between one area with more inventory and another with higher asking rents, according to a report the company will release later today.

While buildings east of Broadway made deals for 1.75 million square feet of leasing activity in the year to date to nearly match the 1.76 million square feet of leasing activity west of the corridor, properties west of Broadway carried average asking rents of $58.14 per square foot to the east of Broadway average of $43.03 per square foot, figures from the report show. Read More