Leasing Volume Starts the Year Right

NEW YORK CITY-Manhattan’s office leasing market started off the year in much better shape than it had done 12 months previously, with CB Richard Ellis putting overall monthly volume at 1.94 million square feet, compared to 920,000 square feet in January 2009. Among other things, that meant a 20-basis point decline in the overall vacancy rate despite an inventory increase of 3.2 million square feet, according to Cassidy Turley.

Nearly one-third of that added inventory was brand-new space: SJP Properties’ 11 Times Square, counted in the tally by Cassidy Turley (formerly Colliers ABR) for the first time. At the moment, the speculative office property is 100% vacant although published reports suggest that could change by the time the tower comes on line later this year. Another newly added property, the new Goldman Sachs headquarters at 200 West St., is counted as 100% occupied. With these new properties in the mix, Manhattan’s total office inventory is 449.1 million square feet.

Although figures may vary by company due to differing measurement methodologies, the consensus view of reports by CBRE, Cassidy Turley and Jones Lang LaSalle is that Manhattan’s vacancy rate did decline month-over-month in January. CBRE’s figures show a 10-basis point drop from 9.8% in December ’09 to 9.7%, while Cassidy Turley says it was 13.5% in December and 13.3% last month. Coming in between those figures is JLL, which puts the island’s overall vacancy at 12.8%.