Manhattan Office Rents Show Positive Signs in Third Quarter Report

Colliers International published their Manhattan 3rd quarter Office Market Report recently.  The report indicates that leasing activity between January and September reached levels not seen since 2002.  Also year to date activity has already surpassed 2008-2012 levels.

The robust job market has precipitated the growth in the office market sector.  Specifically from August 2017 to August 2018, New York City added 74,200 new private sector jobs which was a 1.9% increase.  Also, unemployment has dropped 0.8% within the year as well.  Manhattan leasing was showing significant health as it has shown a 4 year high.  Leasing increased 20.1% from the 3rd quarter of 2017 and 25.4% over Manhattan's 5 year historical average and 48.5% over the 10 year average.  Quarterly inventory remains unchanged at 10.2% for the quarter and slightly above (.4%) year over year.

The news on asking rents is even better for landlords.  The report shows that asking rents has hit an all-time quarterly record at $75.86/ sf.  The asking rents is up 2.3% from the 2nd quarter which is the largest quarterly increase in 3 years.

In an interview at Globest.com, Craig Caggiano, Colliers International’s executive director states that absorption is a great indicator of the future.  It is noted that because of new construction and relocation tenants are moving from Midtown to Hudson Yards and Downtown.  In what is considered a "home run" he states  “Those tenants leave big holes in the market.  Those spaces are coming into our availability right now and into 2019. The fact that we are able to absorb that availability because of strong, relatively stable leasing has been a very important market indicator.”

The top sub-markets for asking rents are the following:

1.  Hudson Yards/Manhattan West- $106.19 sf
2.  Plaza District- $96.28 sf
3.  Soho- $89.93 sf
4.  Midtown- $84.33 sf
5.  Greenwich Village- $82.48

The top sub-markets for leasing activity by square footage are the following:

1.  Midtown- 7,346,224
2.  Midtown South- 3,088,334
3.  Plaza District- 2,810,959
4.  Grand Central- 2,379,560
5.  Times Square- 1,654,621

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

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Brooklyn Remains Top Sellers' Market in NYC According to New Study

Investors in the market are always looking for the most advantageous deals.  Sellers are  looking for the optimal time to cash out on their property. A new study by StreetEasy indicates that the deals are spread out more throughout the City while the sellers'  have more power in Brooklyn.  The Buyer/Seller survey looked into several factors in determining what is the best to both categories.  The factors included on what they call the Buyer/Seller index included factors as:

• Time on market
• Price cuts
• Sold price in relation to asking price

Based on the criteria it was found that Brooklyn maintained its lead for sellers looking to cash out.  The best neighborhoods for sellers along with the median sales prices according to the index were:

Kensington- Brooklyn $515,000

Prospect Heights- Brooklyn $735,000

Fort Greene-Brooklyn $ 682,720

Cobble Hill-Brooklyn $1,330,000

Lower East Side in Manhattan  $775,000

The neighborhoods that are tougher to sell are spread throughout the boroughs. These are areas that units are harder to sell and prices are reduced in order to close transactions:

Kew Gardens Hills - $248,000

Canarsie - $380,000

Sheepshead Bay - $390,250

Midtown - $1.45 million

SoHo - $3.29 million

This information should assist he investor make informative decisions in determining where to purchase their next property.  There is much more wiggle room when it comes to negotiating prices in the Buyer’s index.  The index can assist you prepare your finances accordingly in order to get into these markets.  Determining what the market and future rents can be are will also help in determining whether this will potentially be an overall profitable investment for your real estate portfolio.

If you are in need of management of your property or properties in NYC then Blue Harbour Property Management is the company for you.  We can help you determine what is the value of your investment and cater to it so you can maximize the revenue potential.

http://www.blueharbourpropertymanagement.com/brooklyn-remains-top-sellers-market-according-new-study/

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