Office Rental Rates in NY- 1st Quarter 2015
Office Rental Rates in NY- 1st Quarter 2015
Costar Group, the Commercial Real Estate Information Company reports that the NYC office vacancy was 8.1% in Q1 2015, unchanged from Q4 2014. The average quoted office rental rates in NY (across A, B and C Building Classes) increased to $57.00 PSF, up 1.95% over $55.91 in Q4 2014. Even though Landlord optimism about untapped demand continues to push up rents, the volume of lease transactions reveal a different reality. As reported in Bloomberg Business on April 8, 2015 “Manhattan office leasing extended a decline in the first quarter, falling to the lowest level in a year and a half, as rising rents and a lack of affordable options caused some tenants to hold back on new agreements. Deals were signed for about 6.8 million square feet (632,000 square meters), down from 12 million square feet a year earlier and a record 12.7 million square feet at the end of 2013.”
Total Office Market Statistics- Q1 2015
In the table above, “Market” is defined as follows: Downtown includes Financial, Insurance, City Hall, Tribeca and the World Trade Center. Midtown includes Grand Central, Plaza, Columbus Circle, Times Square, Penn Station/Garment Center, Murray Hill and United Nations Plaza. Midtown South includes Gramercy Park, Chelsea, Hudson Square, Greenwich Village and SOHO. Uptown includes Upper East Side, Upper West Side, and Harlem/North Manhattan.
Total Sub-Market Statistics- Q1 2015
Largest Office Leases Signed in Q1 2015
520,918 RSF lease renewal by Publicis Group at 1675 Broadway
500,000 RSF lease renewal and expansion by MetLife, Inc.at 200 Park Avenue
234,879 RSF lease by WeWork at 85 Broad Street
198,619 RSF lease by Fortress Investment Group LLC at 1345 Avenue of the Americas
180,000 RSF lease by WeWork at 1460 Broadway
Office Rental Rates in NY… CONTROLLING & REDUCING YOUR BUDGET
(1) Space Reduction and Redesign: Businesses are reducing the size of their offices by modifying the design and paring down the area occupied by each employee. Use our office space calculator to estimate your essential requirement. Some companies are using hourly or daily rentals at off-site business centers for part-time staff and conferences.
(2) Flex Work and Telecommuting: Flexible work schedules may allow two or more employees to utilize a specific work area. Where practical utilize telecommuting.
(3) Relocation: Downtown has many quality buildings for lease at a 10- 30% discount over comparable midtown properties. The Lower Manhattan Commercial Revitalization Program offers total rent credits of $10.00 PSF for qualifying businesses.
RECOMMENDED Strategy for FINDING NY Office space
Cogent Realty Advisors provides NO FEE Tenant Representation to New York businesses. By utilizing our extensive commercial office database and an established network of professional contacts, we will find you an office that satisfies your specific requirements. Contact Mitchell Waldman today: (212) 509-4049.
