NEW YORK CITY-The third quarter was a slow one, with average asking rents and vacancy rates largely flat, according to Cushman & Wakefield, thanks to continued drag from the financial services sector as well as a traditional stoppage of activity due to the summer months. Negative absorption was found in all but one submarket.
But sometimes, analysts said—shockingly—the numbers aren't everything. “Vacancy rates and asking rents don't tell the story of Manhattan leasing velocity,” said Ron Lo Russo, president of the New York tri-state region during Cushman's third-quarter press briefing Thursday in Midtown Manhattan.
“There's a lot of strength in the pipeline,” he noted. A total of 71 tenants currently in the market that have over 10,000 square feet of requirements will have leases expiring in 2014. Together that accounts for a total of 3.2 million square feet.?Manhattan leasing activity overall has increased nearly 10% year-over-year. Additionally, there were a total of 48 transactions in the quarter, with base taking rents of $100 per square foot or more, completed thus far in 2013. In comparison to last year, 35 transactions were completed for all of 2012.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
