Vacancies Fall Amongst NYC Class A Office Properties
- Jul 02, 2010
July 2, 2010
By Allison Landa, News Editor
Jones Lang LaSalle this week found that Class A office vacancy rates in New York tumbled in all submarkets during the second quarter of 2010, with the Midtown and Downtown submarkets seeing rental rates nearly unchanged.
Vacancy rates dropped amongst all property types in Midtown, where the overall vacancy rate fell to 13.2 percent at mid-2010, a drop of 3 percent from the overall vacancy rate of 13.6 percent in the first quarter. Class A vacancy rates fell to 13.4 percent over the second quarter, down 3.4 percent from the previous quarter’s 13.9 percent.
Class B vacancies also fell, tumbling to 12.8 percent from 13.2 percent in the first quarter. Moreover, average asking rates for Class A space in Midtown remained nearly unchanged, posting an average rate of $64.25 per square foot at mid-2010, down just 1 cent from the Class A rate of $64.26 per square foot in the first quarter.
“Leasing activity is up considerably over this past year, while the number of large blocks of space coming back to the market has slowed,” JLL vice president and director of research for the New York office James Delmonte said in a prepared statement. “With demand finally outweighing supply, vacancy levels improved in some submarkets, leading to positive absorption for the overall market.”