Average price of Manhattan office space below $30
The volume of available Manhattan office space continued to expand in March, while average prices dropped below the $30 mark for the first time in recent memory. Prices averaged $29.99 a square foot, a decline of 1.95 percent over the February figure.
So reports Newmark’s NYC Office Space Index, a monthly update and analysis of the latest trends and conditions in the Manhattan office marketplace prepared by Newmark Real Estate Services, a division of Newmark & Company Real Estate, Inc.
According to the report, which monitors leasing activity, space availability and asking prices in the city’s eight largest office districts, the April Index revealed that:
*More than 56.9 million square feet of space (16.73 percent of the total marketplace) is now available for either direct lease or sublease, an increase of 1.28 percent over the previous month’s figure
*March average asking prices ranged from a high of $38.30 in the Plaza district (down 3.06 percent) to a low of $16.70 (no change) in the Soho/Lower Broadway district
*The Empire State, Grand Central, Midtown West, Midtown, Midtown South and Wall Street districts all showed price decreases of 13.55 percent, .80 percent, .87 percent, 2.78 percent, .33 percent and .44 percent respectively
*Overall vacancy rates (both Class A and B Space) rose in six of the eight office districts during the month, with the Wall Street (Up 6.30 percent) and Grand Central (up 2.65 percent) areas showing the biggest percentage increases. Vacancy levels dropped by 9.19 percent in the Midtown West area and by .09 percent in the Soho/Lower Broadway
*The Midtown district continues to have by far the most space available (31,963,711 square feet), followed by the Wall Street area (19,833,819), Grand Central (10,270,919), Midtown West (9,588,042), the Plaza district (8,008,076), Empire State district (4,096,674), Midtown South (3,595,343) and Soho/Broadway (1,599,162)
*Along the most fashionable midtown avenues, average asking prices in March ranged from a high of $42.23 a foot on Park (14.91 percent vacancy) to $28.08 a foot (22.09 percent vacancy) on Broadway. Prices on Fifth and Madison Avenues averaged $36.38 and $35.59 a foot respectively
The NYC Office Space Index is prepared under the direction of Newmark Real Estate Services president Barry Gosin. Information about the report is available by contacting the company’s midtown headquarters at 477 Madison Avenue.
COPYRIGHT 1992 Hagedorn Publication
COPYRIGHT 2004 Gale Group
