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Office Tenants Still Downtown-Shy; Midtown South Hitting Stride

NEW YORK CITY-While Midtown and Downtown experienced a slump in asking rents last month, the Midtown South office market has perhaps finally begun to gel, according a newly issued Newmark report. However, Steve Schofel says that while the area may be the first to stabilize following Sept. 11, Midtown will be the less volatile area in the long run.

By Michael Gilliard | Updated on March 28, 2002

NEW YORK CITY-Manhattan’s February office market availability jumped from 11.8% to 12.1% in February, as an additional 1,077,588 sf hit the market in Midtown, Midtown south and Downtown. Midtown south held steady last month, as rents in Midtown and Downtown continue to slide by nearly a dollar, according to a recent Newmark report.

The Midtown South office market may have finally begun to stabilize after a rocky year of rate slumps. The report indicates overall availability increased only slightly last month, from 13.1% to 13.3%. The area returned 182,498 sf to the direct market and 11,237 sf of sublet space, while asking rents remained relatively stable, dipping from $34.40 to $34.12.

“A great deal of Midtown South sublet space, particularly from new-media companies, was on the market earlier than September of last year,” Steve Schofel, executive managing director at Newmark, tells GlobeSt.com. “The area has simply had more time to even out.”

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