Manhattan Office Market Shows Long-Term Strength

NEW YORK CITY-Rent levels in 2003 still reflect steady growth over the past 10 years, despite the current malaise affecting the Manhattan real estate market, according to a report by GVA Williams. Overall, the real estate market is in better shape than it was in the last recession.

“In general, there seems to be stability and a lot of activity this year,” says Donald Lutt, GVA Williams managing director. There has been a wave of downtown leasing with landlords being aggressive.”

According to the report, total availability in Manhattan declined two-tenths of a percent, with more than 650,000 sf absorbed, lowering the availability rate to 14.3% at the end of the first quarter of 2003. Overall, asking rents declined $1.40 per sf to $43 at the end of March 2003.