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Heading in a positive direction.

As we head into the mid-point of 1993, New York City's office market appears to be moving in a positive direction.

For example, during the first four months of this year:

* Over 4.2 million square feet of office space was leased in Midtown, a net absorption of 300,000 square feet

* In the Downtown district, about 2.2 million-square-foot of space was leased -- a significant increase over the 1.5 million feet total achieved during the first four months of 1992. Sparked by the Prudential Securities renewal at One Seaport Plaza and its lease of over a million square feet at Chase Manhattan's One New York Plaza, it appears that a "near equilibrium" between the leasing of space and the return of space to the downtown market has now been achieved

* Finally, year-to-date leasing totals point to healthier conditions in Midtown South, where 470,000 square feet has already been leased in 1993 compared to 456,000 square feet last year

These early trends follow a positive Manhattan office market performance in 1992 when more than 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, more will be done in this area.

Still, the impressive office market figures garnished in 1992 should not be under estimated. 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 Courdert Brothers, the Internal Revenue Service, Price Waterhouse, Simon & Schuster and New's America's Publishing, precipitated this climb.
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Title Annotation:Mid-Year Review & Forecast, Section I; evaluation of New York, New York office leasing industry for 1993
Author:Siegel, Stephen B.
Publication:Real Estate Weekly
Article Type:Column
Date:Jun 23, 1993
Previous Article:More signs of life evident all over.
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