Continued uncertainty cools today's market.New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of City's commercial real estate market has slowed as the city's corporations have adopted a cautious outlook in reaction to persistent economic woes and contrasting economic forecasts. The softening economy and an increase in sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. space have alleviated pressure on tenants, allowing them to investigate numerous space options. While asking rents have not dropped significantly, negotiation has returned to the leasing process and many owners are showing flexibility on taking rents. Building owners are now more willing to negotiate concession packages, including increased work letters and, in many cases, free rent -- items that virtually disappeared from the bargaining table during the real estate frenzy of the late 1990s and early 2000. The slowdown in leasing activity has resulted in a slight increase in Midtown and Downtown vacancy rates. However, both markets remain quite tight historically. Overall rates, which stood near or below 2 percent at year-end 2000, climbed to just below 6 percent in the second quarter of 2001. As more opportunities open up in traditional office districts, some of the city's marginal neighborhoods, like the Far West side, stand to lose much of the interest they gained during the recent boom. Encouraged by a single-digit vacancy rate, several developers are continuing with projects in Midtown. Brookfield Properties Brookfield Properties Corporation TSX: BPO NYSE: BPO is a Toronto-based North American commercial real estate company. Brookfield Asset Management owns 50% of its outstanding common shares. Corp. has already begun building a 1.2 million-square-foot office building at Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. and 42nd Street, which has been pre-leased to CIBC CIBC Canadian Imperial Bank of Commerce CIBC Centres Interinstitutionnels de Bilan de Compétences CIBC Commonwealth Institute of Biological Control (Trinidad) CIBC Commercial International Brokerage Company Oppenheimer. Vornado Realty Trust Vornado Realty Trust (NYSE: VNO) is a New York based real estate investment trust. It is the inheritor of real estate formerly controlled by companies including Two Guys and Alexander's. and Lawrence Ruben Co. are moving forward on the planning of 20 Times Square, a 40-story office building on top of the Port Authority of New York and New Jersey Port Authority of New York and New Jersey, self-sustaining public corporation established in 1921 by the states of New York and New Jersey to administer the activities of the New York–New Jersey port area, which has a waterfront of c. bus terminal at 42nd Street and Eighth Avenue. In addition, LCOR Inc. is planning to construct a 200,000 SF office and retail center at 42nd Street and Fifth Avenue. While these projects are significant, they will not likely affect commercial vacancy conditions in the city. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion