No Traction on Rents Despite Leasing Surge

NEW YORK CITY-While Midtown’s office leasing may eclipse 2007 by year’s end, rents throughout Manhattan show little upward movement, says CBRE.

By Paul Bubny | Updated on October 13, 2010

NEW YORK CITY-With 11.7 million square feet of space leased through Sept. 30, Midtown’s office market has already exceeded last year’s total, and is on pace to match not only 2008 but perhaps the 2007 total of 14 million square feet, as well, CB Richard Ellis said in its third-quarter report released Wednesday.

Midtown absorption, too, has turned positive by 4.4 million square feet year to date, compared to 6.9 million square feet of negative absorption during the first nine months of 2009. The availability rate has reached its lowest point since the beginning of 2009 at 13%. However, in Midtown and in the rest of Manhattan, rents remain pretty much in the same ballpark as a year ago, notwithstanding a 51.6% year-over-year gain in leasing volume across the three submarkets.

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