Vacancies in Manhattan at their lowest level since 2001
24 Jul, 2005, New York
The amount of vacant office space in Manhattan, particularly in much sought-after locations and with first-class fittings, continued to fall in the second quarter of this year. According to calculations by Cushman & Wakefield (C&W), the international consulting firm for commercial property, it now amounts to 9.8%, the lowest figure since the fourth quarter of 2001.
Vacancies have continuously decreased since the start of the year, while Manhattan rents have risen. The average gross rental in the last quarter was $36.60/m² per month, $1.12 above the average rent at the end of last year. Top rentals also rose in the second quarter, and now amount to $43.24 /m² per month. At the same time, demand for first-class office space rose noticeably: Viacom, for example, rented approximately 25,200 m² at 1540 Broadway, McDermott, Will & Emery rented 14,535 m² at 340 Madison Avenue and the CIT Group rented about 12,100 m² at 505 Fifth Avenue.
"It was noteworthy", say the C&W researchers, "that the difference in rent between midtown and downtown was never so high as in the last quarter, an average gross figure of $15.30/m² per month."
After three sensational sales in the last quarter, the investment market is on its way to a record year: Tishman Speyer acquired 200 Park Avenue from Met Life for $ 1.7 billion, the most expensive single property purchase ever. S.L. Green purchased One Madison Avenue – also from Met Life – for $ 918 million, and Equity Office bought 1095 Avenue of the Americas from Verizon for $505 million.
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