NEW YORK CITY-Yet another third quarter report has come out, and this one is decidedly upbeat.
The Manhattan office market continued to gain momentum in the third quarter, “as all market indicators are heading in the right direction,” according to a new report from Cassidy Turley. Demand remains strong as another 1.3 million square feet of positive absorption was recorded in the third quarter, bringing the 2013 total to 1.9 million square feet.
A key reason for this surge, the report states, is the demand for big blocks of space. In the first quarter, there were 83 blocks of available contiguous space 100,000 square feet and greater, but an increase in activity has pulled that number down to 68. This has caused the availability rate to drop 20 basis points to 11.2%, its lowest level since 2008. Asking rents continue to rise however, with Class B rent increases continuing to outpace Class A. Class B average asking rents soared $2.50 per square foot, to $53.28, while Class A rents went up only $.68, to $69.97 per square foot.
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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.
