For commercial leasing in Midtown, it's business as usual.Talk of a real estate market demise Death. A conveyance of property, usually of an interest in land. Originally meant a posthumous grant but has come to be applied commonly to a conveyance that is made for a definitive term, such as an estate for a term of years. has been greatly exaggerated. The fact is, that in terms of commercial real estate leasing activity, it's business as usual. The Midtown mid·town n. A central portion of a city, between uptown and downtown. midtown Noun US & Canad the centre of a town Manhattan office market, for example, has seen its year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. leasing climb by more than 10 percent in August alone. With Park Avenue leading the way, Midtown recorded 1.44 million square feet of total leasing in August - a 20 percent increase from August 1997's level. Indicative of the market's strength, several blue-chip tenants have taken space in Midtown during 1998. Large lease signings by major tenants included Donaldson Lufkin & Jenrette's 216,345 square feet at 280 Park Avenue and 24,500 square feet at 230 Park Avenue; WitTel Communication's 63,153 square feet at 250 Park Avenue; NationsBanc Montgomery Securities' 87,650 square feet at 9 West 57th West 57th can refer to:
In light of this robust activity, demand for quality space should continue at a strong pace throughout the remainder of 1998 and well into 1999, with certain areas of Midtown, such as Park Avenue, becoming super-heated. As a result, neighborhoods on the periphery periphery /pe·riph·ery/ (pe-rif´er-e) an outward surface or structure; the portion of a system outside the central region.periph´eral pe·riph·er·y n. 1. are benefiting from an overflow of tenants. One such example is the recent activity at 919 Third Avenue, where Debevoise & Plimpton, a prominent 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 law firm, recently signed a lease for 416,000 square feet, and Schulte Roth & Zabel committed to 211,923 square feet. The market's exceptional leasing performance has prompted a jump in the overall average asking rent, which climbed by 3 percent in August to $42.43 per square foot. The Fifth/Madison Avenue submarket sub·mar·ket n. A geographic, economic, or specialized subdivision of a market. adj. Being below what is usual in a particular market: submarket wages; submarket interest rates. boasts the highest average asking rent at more than $55 per square foot, while the Penn/Garment submarket has the lowest at a more than respectable $28.03 per square foot. The continuing demand, as well as rising rents, will more than certainly spur additional development, although new product is not expected to enter the market until 1999. As a result, we will continue to see a further tightening of the market and rents continuing to climb further, perhaps surpassing the $60 per square foot mark by early 1999. |
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