"It's not that one large dot-com went out," says Freedman. "It was the smaller 5,000-sf and 10,000-sf tenants that have left the market." Freedman adds that nearly 1.3 million sf has come back on the market, boosting the Midtown South vacancy rate from 6.2% to 8.4%. Nearly the same amount of space is on the market now as was in March 1999; however, asking rents in Midtown South in 1999 were running an average of $30.44 per sf; now it's an astonishing $45.38 per sf.
Things aren't looking much better in Midtown North where the vacancy rate is 5.9%, up from 4.4%. Nearly 2.8 million sf came back onto the market, leaving a total of nearly 11 million sf available at the end of the first quarter.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
