Commercial Real Estate Report - New York Metro, NY [Office]

Property Type

The general purpose, multi-tenant Manhattan office market ended 2012 with a single digit vacancy rate and strong rent gains, but a shrinking inventory and no strong demand is the reason. The vacancy rate as of the fourth quarter of 2012, according to Reis, is down 60 basis points during the course of 2012. The fourth quarter vacancy rate decrease was 20 basis points. New York's office rent gains were solid in 2012, if down slightly from the gains of 2011. The average asking rent increased 3.9% during the year , while the average effective rent rose 4.6%. The fourth quarter increase was 1.4% by both measures. (3/8/13)

Boundaries

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Recent Sales New Construction Highlight Submarkets

Latest Quarterly Reports (Q1 2013)

New York Metro, NY - Entire Metro
Submarkets
Downtown -60 bps  
Penn Station -50 bps  
South Broadway -20 bps  
Midtown West -10 bps  
Plaza -10 bps  
Grand Central 0 bps  
Midtown South 80 bps  
 
 
 

Recent Sales

Cap Rate Trend

Sales Trend

Q1
2013
Q4
2012
Q3
2012
Q2
2012
Mean 6.9% 5.9% 5.3% 8.2%
Median 4.9% 5.2% 5.3% 6.1%
12 Month Rolling 6.3% 6.3% 6.8% 6.9%

Commercial Real Estate News

Recent Rent Observations

Location ID Class Rent
Plaza 25510 A $84
Plaza 14770 A $82
Plaza 13700 A $149
Plaza 12240 A $98
Grand Central 10660 BC $55
Grand Central 10710 A $70
Grand Central 10690 A $60
Plaza 09190 A $60
Grand Central 53740 BC $36
Midtown West 15370 A $75

Change From Previous Quarter

Market Rent Vac Inv
New York Metro 0.1% 0 bps -0.0%
Northeast Region 0.1% 0 bps 0.0%
United States 0.0% 0 bps -0.0%

Metro vs. Region 0.0% 0 bps 0.0%
Metro vs. US 0.1% 0 bps 0.0%

Latest New Construction Updates

Location Size
N/A 0.5M - 1.0M
N/A 0 - 500,000
N/A 0 - 500,000
N/A 0 - 500,000
N/A 0 - 500,000
N/A 0 - 500,000
N/A 0 - 500,000
N/A 0 - 500,000
South Broadway 0 - 500,000
N/A 0 - 500,000
View all Construction Projects

National Office Real Estate Trends

Vacancy Trends
Supply and Demand
Inventory Change
Inventory Change

Metropolitan Office Rankings (Q1 2013)

Based on 190 U.S. Markets
Value:
1. Queens, NY 6.9%
2. Brooklyn, NY 9.1%
3. Santa Barbara, CA 9.1%
4. District of Columbia, DC 9.5%
5. New York Metro, NY 9.8%
6. El Paso, TX 10.4%
7. Fargo, ND 11.0%
8. Bakersfield, CA 11.1%
9. Bloomington, IN 11.5%
10. Anchorage, AK 11.6%
11. Amarillo, TX 11.9%

Avg Annual Growth Rate (2013 - 2017)

Market Rent Vac Inv
New York Metro 0.8% 1,051 bps 0.7%
Northeast Region 2.0% 1,456 bps 0.6%
United States 0.6% 1,704 bps 0.9%

Metro vs. Region -1.1% -405 bps 0.0%
Metro vs. US 0.2% -653 bps -0.3%