Printer Friendly

Availability up in Midtown South.

Availability up in Midtown South

The availability rate in the Midtown North office market rose to 16.33 percent in the third quarter of 1991 with 28.9 million square feet available, according to the Williams Report released by Williams Real Estate Co. Inc.

Availabilities in buildings built since 1969 climbed 4 percent to 15.1 million square feet, representing 52.2 percent of total inventory and 20.2 percent of all existing post-1968 space. Average asking rentals, which dropped about $2 per square foot in each of the past two years for this sector, fell to $41.34 per square foot.

In pre-war buildings, availabilities also rose, reaching a total of 5.2 million sq. feet. The average asking rental declined 3.2 percent to $30.80 per square foot.

Availabilities in buildings constructed from 1946 to 1968 declined by 1 million square feet, due to both leasing activity and space withdrawals. The 8.6 million square feet now available is less than 30 percent of total inventory for the first time in several years, according to Andrew H. Roos, executive vice president of Williams.

Several large blocks of space were leased or became available in the third quarter. The largest transaction closed was the law firm LeBoeuf Lamb Leiby & Macrae's lease of 182,000 square feet at 125 West 55th Street. A total of 107,000 square feet was leased at 733 Third Avenue, of which half was taken by Sun America Life Insurance Company.

Availabilities include over 300,000 square feet at Citicorp Center being vacated by Price Waterhouse and 55,000 square feet by the law firm Willkie Farr & Gallagher, 120,000 square feet at 1221 Avenue of the Americas being vacated by Salomon Bros., 97,000 square feet at 228 East 45th Street and 88,000 square feet at 101 Park Avenue due to the contractions of Security Pacific and Chase Manhattan, respectively, and 67,000 square feet at 666 Fifth Avenue due to the bankruptcy of Gaston & Snow.

Although Midtown North registered 344,000 square feet in positive net absorption during the third quarter, this is due primarily to large blocks of space withdrawn from the market at 200 Park Avenue, 1251 and 1290 Avenue of the Americas by owners due to bankruptcies, ongoing tenant negotiations, and so on, Roos said.

The average asking rental in Midtown North is $38.16 per square foot, a 2.5 percent drop during the third quarter - equal to the declines in the first two quarters of 1991 combined. In the third quarter of 1990, the average asking rental was $40.79 per square foot.

Sublease availabilities stand at 7 million square feet, nearly one-quarter of total inventory. Average asking rentals for subleases fell 4.6 percent to $33.44 per square foot, on the heels of a 6 percent drop in the second quarter.
COPYRIGHT 1991 Hagedorn Publication
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:New York City
Publication:Real Estate Weekly
Date:Dec 25, 1991
Previous Article:Tishman tops out on Post Office facility.
Next Article:Industry hopes for healthier '92.

Related Articles
Leasing activity steady in February.
Midtown South office market leads comeback.
City leasing continues positive trends.
Midtown leasing tops a million square feet.
Manhattan market moving full speed ahead.
Tightening in office market prompts tenants to re-evaluate space issues.
Midtown availabilities are lowest in a decade.
Insignia/ESG office market report.
Downtown fueled by bank lease.
Downtown vacancy rate drops in 1Q.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters