(Ian Ritter is national online editor for GlobeSt.com/RETAIL.)

NEW YORK CITY-Commercial real estate in the Manhattan retail and office sectors continues to boom, as companies continue to pay higher rents and demand space, according to Cushman & Wakefield's quarterly market outlook. "It's definitely a landlord's market," said Joseph Harbart, chief operating officer of the New York Metro area for the firm, at the firm's quarterly update today.

While office leasing during the first quarter was down to five million sf from 5.9 million sf during the same year-ago period, companies are paying higher rents than ever. Average rents in Manhattan climbed to a record $53.43 per sf, while class A rents in Midtown hit an all-time best of $70.77 per sf. Previous highs were sent in the third quarter of 2000.

On the retail front, the area is seeing more demand from both major US chains and international retailers. "Retailers are eager if not anxious to get into this marketplace," Harbart said.