Middle Market Digest – The Northeast January 19, 2018
Here is a roundup of the latest leases, sales and other transactions in the Northeast middle markets.
This week by the numbers
Manhattan leasing activity totaled 7.35 million square feet in the fourth quarter of 2017, 10 percent above its five-year quarterly average, bringing annual leasing activity to 28.43 million square feet at year-end, a 24 percent increase from 2016’s total. In its New York City Office Marketviews research, CBRE says the quarterly Manhattan availability rate was 11.5 percent, down 20 basis points from Q3 2017, but unchanged from a year ago. Quarterly net absorption registered 750,000 square feet, bringing the year-end total to negative 544,000 square feet. The average asking rent, at $72.91 per square feet, declined one percent quarter-over-quarter, but was virtually unchanged from a year ago. Sublease availability currently stands at 2.3 percent, down 10 bps from Q3 2017, but up 20 bps year-over-year.
“The fourth quarter capped off a strong year for the Manhattan office market,” says Nicole LaRusso, Director, Research & Analysis, CBRE Tri-State. “A robust economy supported business expansion and gave a boost to leasing activity. Average rents and the availability rate held steady for Manhattan overall, though availability might tick up as more space comes to market this year. With the stimulus provided by the new federal tax law, we may see a boost to corporate demand for space that would prolong economic expansion.”
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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