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Vacancy rate stable in midtown.

Vacancy rate stable in Midtown

The midtown Manhattan primary vacancy rate remained stable at 17.4 percent, for the fourth consecutive month, according to Cushman & Wakefield, Inc.

Leasing in May reached 1.2 million square feet in Midtown. Downtown, strong leasing caused the primary vacancy rate to fall to 17.0 percent from 17.3 percent in April. Leasing for May totalled 378,000 square feet.

"Prices have been easing in both markets, and eventually, this should boost leasing," said James S. Vanderslice, managing director and branch manager of Cushman & Wakefield's New York offices.


Several significant transactions were finalized this month. The law firm Marks Murase & White signed for 89,000 square feet at 399 Park Avenue; The Society of the New York Hospital committed to 76,000 square feet at 333 East 38th Street; and Worldvision Enterprises, a television production company, leased 41,000 square feet at 1700 Broadway.

Bantam Books Dell Doubleday Publishing added 240,000 square feet at 666 Fifth Avenue, and Marine Midland Bank added 81,000 square feet at 250 Park Avenue.

Significantly, 856,000 square feet of secondary space was added to the market in May causing the secondary vacancy rate to jump to 18.1 percent from 17.7 percent in April. Contributing to this was the addition of 100,000 square feet of space by several tenants at 325 Hudson Street.

Primary asking rental rates decreased to $39.14 per square foot from $39.31 in April. Secondary asking rentals also fell to $20.14 from $20.20 per square foot in April.


Strong leasing caused the primary Downtown vacancy rate to fall to 17.0 percent from 17.3 percent in April. Leasing for May totalled 378,000 square feet.

Conversely, the secondary vacancy rate rose to 24.0 percent from 233 percent as 231,000 square feet was added to the rnarket.

The largest leases in May were Credit Suisse's commitment to 147,000 square feet at One Liberty Plaza; U.S. Attorney's Office lease for 41,200 square feet at 100 Church Street; and New York State Court's transaction for 25,425 square feet at Five World Trade Center.

Primary and secondary asking rentals continued to decline in May. Asking rentals for primary space fell to $32.59 from $32.77 per square foot in April. Similarly, secondary average asking rentals dropped to $21.75 from $22.01 per square foot.
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Title Annotation:Manhattan, New York, New York
Publication:Real Estate Weekly
Date:Jun 26, 1991
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