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Early signs encouraging.

Is a recovery underway in the New York office market? No one can tell for certain, but the early signs this year appear to be encouraging. For example, during the first two months of 1993:

* Over 2.1 million square feet of office space was leased in Midtown, a pace slightly ahead of 1992

* In the Downtown district, about 217,000 more feet of space was leased than was put back on the market. Last year, the reverse was true as net absorption figures were negative by a whopping 476,000 square feet

* Finally, year-to-date leasing totals point to healthier conditions in Midtown South, where 250,000 square feet has already been leased in 1993 compared to 130,000 square feet last year. These early trends follow a positive Manhattan office market performance in 1992 when over 19 million square feet of space was leased -- an impressive 35 percent jump over the 14 million square feet leased in 1991.

Best of all, the city is now demonstrating a much needed proactive approach to tenant retention, and hopefully, more will be done in this area.

Still, the impressive office market figures garnished in 1992 should not be underestimated. Midtown Manhattan, for example, witnessed a 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.
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Title Annotation:Commercial Sales & Leasing; recovery predicted for New York, New York office leasing market
Author:Siegel, Stephen B.
Publication:Real Estate Weekly
Date:Mar 24, 1993
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