CB Richard Ellis Issues August 2010 Manhattan Marketview Snapshots
Finds July Manhattan Leasing Strong as All Three Markets Exceeded Their Five-Year Monthly Average; Average Asking Rents Continue to Stabilize
New York, NY – August 11, 2010 – Manhattan's July leasing activity exceeded the five-year average for all three markets, according to CB Richard Ellis' August 2010 MarketView Snapshots issued today. Midtown and Midtown South topped their respective five-year monthly averages for the third consecutive month, as Downtown outperformed its average for the first time since August 2009. Overall Manhattan average asking rents continued to stabilize, dipping slightly from $47.61 per square foot in June to $47.57 per sq. ft. in July, compared to $52.43 in July 2009.
Among the reports' highlights:
Midtown – Despite a number of new availabilities, July absorption remained fairly steady at 490,000 sq. ft., compared to 510,000 sq. ft. in June and 420,000 sq. ft. in July 2009. Leasing activity was 24% above the five-year monthly average of 1.22 million sq. ft., at 1.51 million sq. ft.
Midtown South – Outperformed its five-year monthly leasing average of 280,000 sq. ft. by 11%, at 310,000 sq. ft., with a third consecutive month of positive absorption and its lowest availability rate since February 2009.
Downtown – Downtown had a blockbuster month of leasing, topping the five-year monthly average by 63%, outperforming its average for the first time since August 2009. July absorption of 520,000 sq. ft., compared with negative 1.29 million sq. ft. in June was the most substantial positive single-month gain since January 2008, with the largest decline in the availability rate since April 2007.
Capital Markets – Thor Equities purchased 693 Fifth Avenue (Takashimaya Building) from Takashimaya for $142 million ($1,406 per sq. ft.). American Realty Capital purchased 306 East 61st Street from urban Partners for $32.8 million ($430 per sq. ft.).
