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Overall, Manhattan leasing up in 1992.

As we look ahead in 1993, there is indeed some cause for optimism. Leasing activity in Manhattan's Midtown, Midtown South and Downtown regions showed a strong surge over the previous year. Over 19 million square feet of space was leased last year, a 35 percent jump over the 14 million square feet leased in 1991. At the same time, the City showed a much needed proactive approach to tenant retention, which should be formidable in chipping away at the tenant exodus from Manhattan.

Midtown Manhattan witnessed the most remarkable upswing, posting a positive net absorption (over 2 million square feet) for the first time in four years. The epicenter of Midtown activity was on Avenue of the Americas and in Midtown West, where Bertelsmann, Inc. purchased One Broadway Place. A number of "mega deals," among them commitments by Coudert Brothers, the Internal Revenue Service, Price-Waterhouse, Simon & Schuster and News America Publishing, precipitated this climb.

Although the Downtown market did not experience an analogous surge, activity was up 20 percent over last year. Despite this, negative absorption in the region totalled over 1.9 million square feet of space, though, as large blocks of space continued to come on the market.

Not reflected in Downtown figures are pending commitments from corporate tenants for just such space. Prudential Securities, for example, is expected to close soon on a commitment for more than one million square feet of space.

By opting to remain in the City, despite favorable concession packages offered elsewhere, Prudential underscored the enduring appeal of a Manhattan address. The city's welcome, aggressive approach to keeping Prudential within its borders, should it continue, bodes well for further such commitments from other important space users in 1993.
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Title Annotation:Review & Forecast Section I; lease activity increases for New York, New York commercial property
Author:Siegel, Stephen B.
Publication:Real Estate Weekly
Date:Jan 27, 1993
Words:285
Previous Article:Market taking steps in right direction.
Next Article:Residential report shows stabilizing prices.
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