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First Quarter Market Report: Just May Be Coming Up Roses

NEW YORK CITY-Insignia/ESG's First Quarter Market report sees an increase in leasing activity, but space returning to the market resulted in overall negative net absorption throughout Manhattan in March.

By Betsy Kraat | Updated on April 11, 2001

NEW YORK CITY-Availability is up and rents are holding steady, according to Insignia/ESG’s First Quarter Market Review. This is obviously good news for tenants–and for brokers. “Our job is going to be more fun than it has been in the last year,” says Mark Boisi, vice chairman at Colliers ABR.

“Recently, space has been just going to the highest bidder and there wasn’t a whole lot of negotiation going on,” Boisi continues. “I think talent is going to come to the fore in 2001 in terms of negotiating transactions for owners and tenants.”

Tenants and brokers alike should get ready to negotiate. Availability is up 0.4% in Midtown to 5.0% and in Downtown 0.2% to 5.1%. Midtown South is holding steady at 7.3% Midtown South’s average asking rent, however, increased $0.70 to $48.03 per sf, while Midtown and Downtown’s asking prices remained stable. Although the Review does mention that Midtown South leasing jumped 1.5 million sf, most of that is from a single transaction–Credit Suisse First Boston’s 1.26 million sf lease at 11 Madison Avenue.

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