POSTINGS

Fourth-Quarter Promises

Early indications suggest that the period between October and December will
clock in as the most active fourth quarter since 2007, just before Manhattans
office market imploded. And while lease flow in 2012 was a far cry from 2011,
7.3%:
Class
B office properties
continued
to experience
when deals by Cond Nast and MIDTOWN
Nomura Holding
straddled
theYORK
million-square-foot
MIDTOWN
SOUTH
NEW
MIDTOWN
SOUTH
NEW
OFFICE
SOUTH
YORK
MARKET
NEW
OFFICE
YORK
- FOURTH
MARKET
OFFICE
QUARTER
- MARKET
FOURTH
-2012
QUARTER
FOURTH
QUARTER
2012
2012whirlwind activity in the fourth
quarter of 2012, even as the total vacancy rate shot up by 2 percent from last year, when
precipice, a bevy of eleventh-hour transactions by Microsoft and Kaye Scholer in
the rate stood at 5.3 percent. A lot more product has been brought to market, particuthe fourth quarter of 2012 helped close the gap. The Commercial Observer reviewed
larly in Madison/Union Square, said Mr. Mazur, who pointed to space at 401 Park Avenue
fourth-quarter leasing in Midtown South with Cushman & Wakefield Director of
WN SOUTH
MIDTOWN
NEW YORK
SOUTH
OFFICE
MIDTOWN
NEW
MARKET
YORK
SOUTH
OFFICE
NEW
MARKET
YORK OFFICE MARKET
South, 11 Madison Avenue, 90 Fifth Avenue and 110 Fifth Avenue.
Research
Jonathan
Mazur
last
week in an bid to gleam a snapshot of the quarter.

Fourth Quarter 2012

Fourth Quarter 2012
Fourth Quarter 20

tatistical Summary
Class A StatisticalClass
Summary
A Statistical Summary

oHo

on Square

W. Village

Number of
Buildings
Submarket

Y-o-Y Total
Y-o-YTotalY-o-Y
Y-o-Y
Y-o-Y
Y-o-Y
Total
Direct Y-o-YTotal
Sublease DirectY-o-YDirect Sublease
Direct
Sublease Direct
Sublease
Total Sublease
DirectY-o-Y Total
Sublease
Direct Y-o-YTotal
Sublease DirectY-o-YTotal Sublease
DirectY-o-Y Total
Sublease
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
% Change
% Change
% Change
% Pt. Change
% Pt. Change
% Avg.
Pt. Change
Change
ChangeLeasing
% Change
% Change
% Change
Number ofAvailable
Number
of Available Available
Available
Available
Available
VacancyAvailable
Available
VacancyVacancy
Available
VacancyVacancy
Vacancy
Vacancy
Vacancy
Wtd. Avg.
Vacancy
Wtd. Avg.
Wtd.
Wtd. Avg.
Wtd. Wtd.
Avg. %
Avg.
Wtd. Wtd.
Avg. Avg.
Leasing% Change
Wtd. %
Avg.
Direct Absorption
Leasing
Total
Direct
Absorption
Absorption
Buildings Space Inventory
Buildings
Space
Rental Rate Rate
Rental Rate
Rental Rate
Rental Rate
RentalRental
Rate Rate
Rate Rate
Activity
Rental Rate
RateRate
Space
SpaceSpace Space Rate SpaceSpace Rate Rate Space Rate Rate Rate Rate Rate

RentalRental
Activity Rate Activity
Inventory
Submarket
Inventory

1: While the stock of Class A office properties in Greenwich Village and Noho
14.3%:
Despite
more
available
space
hitting
the
Class
B0 office
however,
0
N/A
0 expect
0
0 inventory
N/A 0
0
N/A 0.0%with
0 the
0 0.0%
0.0% 0 0.0%
0.0% 0.0% N/A
0.0% 0.0% $0.00
N/A 0.0%
$0.00 $0.00
N/A $0.00
$0.00 $0.00 N/A
$0.00 $0.00
0
N/A
$0.00
N/A
N/A
0 market,
N/A 0
0
0 N/A direct 0 0
is small
to0 say0 the0 least,
to0 triple
addition
of Edward
Greenwich/NoHo
1
120,000
Greenwich/NoHo
1
0
120,000 1 N/A
0 120,000 0
0
0
0 N/A 0.0%
0
0 0.0%
0.0% 0 0.0%
0.0% N/A
0.0% 0.0%
$0.00
N/A
0.0% $0.00
N/A $0.00
$0.00
$0.00 increased
N/A
$0.00 $0.00 to
0 $52.57.
N/A $0.00 A
N/A 14 percent
0 N/A
0 increase
N/A 0
0 N/A
rental
rates
have$0.00
kept
pace,
and
in0 a single
year 0 0
Minskoffs
speculative
51
Astor, aN/A430,000-square-foot
granite
and glass 0.0%
tower
Madison/Union
17
Square 9,372,050
Madison/Union
17 Square
424,571 9,372,050 17106.0% 424,571
9,372,050
366,661 106.0%
424,57157,910 366,661
106.0% 3.9% 57,910
366,6610.6%
3.9% 57,910 4.5%
0.6% 3.9% 2.2%
4.5% 0.6%$48.00 2.2% 4.5%$39.07 $48.00 2.2%$43.49 $39.07$48.00 -4.8% $43.49$39.07370,195 -4.8%$43.49 8.2% 370,195-4.8% (134,478)8.2%370,195 (128,638)
(134,478)
8.2%
(128,638)
(134,478)
is
definitely
significant,
said
Mr.
Mazur.
It
basically
means
higher,
better-quality
space
that
will
compete
for
tenants
with
770
Broadway
when
it
hits
the
market
in
Hudson Sq./W.
7
Village 2,102,656
Hudson Sq./W.
7 Village
260,416 2,102,656 7 -41.4%MIDTOWN
260,416
2,102,656
260,416 -41.4%
260,416
0
260,416-41.4%
12.4%
0YORK
260,4160.0% NEW
12.4%
0 12.4%
0.0%
12.4%
-5.5% YORK
12.4%
$72.91
-5.5% 12.4%$0.00
$72.91 -5.5%$72.91 -2012
$0.00
$72.91 16.0% $72.91$0.00
232,412 16.0%$72.91-43.3%
232,41216.0% 188,250-43.3%
232,412
188,250
188,250
-43.3%
188,250
188,250
MIDTOWN
SOUTH
NEW
MIDTOWN
SOUTH
OFFICE
SOUTH
YORK
MARKET
NEW
OFFICE
- 0.0%
FOURTH
MARKET
OFFICE
QUARTER
MARKET
FOURTH
QUARTER
FOURTH
QUARTER
2012
2012
is$0.00
being
to 0.0%
the$0.00
market.
March.
Chelsea 2
2,788,000
Chelsea
2
0 2,788,000 2 N/A
0 2,788,000 0
N/A 0
0
0 N/A 0.0%
0
0 0.0%
0.0% 0 0.0%
0.0% 0.0% 0.0%
0.0% 0.0%
0.0%brought
0.0% $0.00 $0.00
$0.00 $0.00 N/A
$0.00 $0.00 63,285 N/A $0.00 334.9% 63,285 N/A
0 334.9%63,285
0
0334.9%
0 0
SoHo

Totals 27

SoHo
0

14,382,706
Totals

27

684,98714,382,706 27 5.3% 684,987

14,382,706
627,077 5.3%684,987
57,910 627,0775.3% 4.4%

57,910
627,0770.4%

4.4%57,9104.8%

0.4% 4.4% 0.2%

4.8% 0.4%$68.26

0.2% 4.8%$39.07 $68.26 0.2%$63.59 $39.07$68.2610.7% $63.59$39.07

665,892 10.7%$63.59-13.1% 665,892
10.7% 53,772-13.1%
665,892

WN SOUTH
MIDTOWN
NEW YORK
SOUTH
OFFICE
MIDTOWN
NEW
MARKET
YORK
SOUTH
OFFICE
NEW
MARKET
YORK OFFICE MARKET
tatistical Summary
Class B
Summary
B
A Statistical Class
A Statistical Summary

oHo

on Square

W. Village

59,612
53,772
-13.1%

Number of
Buildings
Submarket
SoHo

1,113,748
SoHo
0

11
0

6,394
11
0 1,113,748
0
0 -19.1%
N/A

6,394
0 1,113,748
0 4,782
0

-19.1%
N/A 6,394
0 1,612
0

0
0
(128,638)
188,250
0
59,612

Year-to-Date
Year-to-Date
Direct
Absorption
Absorption
Total
Rate
Rate

Year-to-Dat
Total Absorpt
Rate

4,782
0 -19.1%
N/A 0.4%
0.0%

1,612
0 4,782
0 0.1%
0.0%

0.4%
0.0% 1,612
0 0.6%
0.0%

0.1%
0.0% 0.4%
0.0% -0.1%
N/A

0.6%
0.0% 0.1%
0.0%$43.18
$0.00

-0.1%
N/A 0.6%
0.0% $0.00

$43.18
$0.00 -0.1%
N/A $43.18
$0.00

$0.00$43.18
$0.00 -6.7%
N/A

$43.18
$0.00 $0.00 31,244
0

-6.7%
N/A $43.18
$0.00 -47.3%
N/A 31,244
0 -6.7%
N/A 15,441
0 -47.3%
N/A 31,244
0

13,829
0 15,441
0 -47.3%
N/A

13,829
15,441
0 0

13,829
0

3,121,328
Greenwich/NoHo
18
172,903
160,483
418.7%
160,483
120,000
1
0 3,121,328
120,000 18
1 418.7%
N/A 172,903
0 3,121,328
120,000
0
N/A172,903
0 12,420
0
0 418.7%
N/A 5.1%
0.0%

12,420
0 160,483
0 0.4%
0.0%

5.1%
0.0% 12,420
0 5.5%
0.0%

0.4%
0.0% 5.1%
0.0% 4.4%
N/A

5.5%
0.0% 0.4%
0.0%$60.56
$0.00

4.4%
N/A 5.5%
0.0% $0.00

$60.56
$0.00 4.4%
N/A $60.56
$0.00

$0.00$60.56
$0.00 30.9%
N/A $60.56
$0.00 $0.00 59,307
0

30.9%
N/A $60.56
$0.00 -64.4%
N/A 59,307
0 30.9%
N/A (120,322)
0 -64.4%
N/A 59,307
0

(132,742)
0(120,322)
0 -64.4%
N/A

(132,742)
(120,322)
0 0

(132,742)
0

Madison/Union
125
Square16,210,488
Madison/Union
125
1,344,891
13.1% 1,344,891
16,210,488
1,147,154
13.1%
1,344,891
197,737
13.1% 7.1%
17
9,372,050
17 Square
424,57116,210,488
9,372,050 125
17106.0%
424,571
9,372,050
366,661 106.0%
424,571
57,910 1,147,154
366,661
106.0%
3.9%

Greenwich/NoHo
18
1

11
0

59,612
53,772

Year-to-Dat
Total Absorpt
Rate

Fourth Quarter 2012

Fourth Quarter 2012
Fourth Quarter 20

Y-o-Y Total
Y-o-YTotalY-o-Y
Y-o-Y
Y-o-Y
Y-o-Y
Total
Direct Y-o-YTotal
Sublease DirectY-o-YDirect Sublease
Direct
Sublease Direct
Sublease
Total Sublease
DirectY-o-Y Total
Sublease
Direct Y-o-YTotal
Sublease DirectY-o-YTotal Sublease
DirectY-o-Y Total
Sublease
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
% Change
% Change
% Change
% Pt. Change
% Pt. Change
% Avg.
Pt. Change
Change
ChangeLeasing
% Change
% Change
% Change
Number ofAvailable
Number
of Available Available
Available
Available
Available
VacancyAvailable
Available
VacancyVacancy
Available
VacancyVacancy
Vacancy
Vacancy
Vacancy
Wtd. Avg.
Vacancy
Wtd. Avg.
Wtd.
Wtd. Avg.
Wtd. Wtd.
Avg. %
Avg.
Wtd. Wtd.
Avg. Avg.
Leasing% Change
Wtd. %
Avg.
Direct Absorption
Leasing
Total
Direct
Absorption
Absorption
Buildings Space Inventory
Buildings
Space
Rental Rate Rate
Rental Rate
Rental Rate
Rental Rate
RentalRental
Rate Rate
Rate Rate
Activity
Rental Rate
RateRate
Space
SpaceSpace Space Rate SpaceSpace Rate Rate Space Rate Rate Rate Rate Rate

RentalRental
Activity Rate Activity
Inventory
Submarket
Inventory

197,737
1,147,154
57,910
366,6611.2%
0.6%

7.1%
3.9%197,737
57,910 8.3%
4.5%

1.2%
7.1% 1.3%
0.6% 3.9%
2.2%

8.3%
1.2%$49.77
4.5% 0.6%
$48.00

1.3%
8.3%$46.54
1.3%$49.39
$49.77 -4.8%
5.4%
2.2% 4.5%
$39.07 $49.77
$48.00 2.2%
$43.49 $46.54
$39.07$48.00

(30,679)
35,103
2.0%
(128,638)
(134,478)
8.2%

(30,679)
35,103
(128,638)
(134,478)

(30,679)
(128,638)

Hudson Sq./W.
11
Village 3,348,220
Hudson Sq./W.
11
214,062
3,348,220
120,166
214,062
120,166
114.4%
3.6%
7
2,102,656
7 Village
260,416 3,348,220
2,102,656 11
7 114.4%
-41.4% 214,062
260,416
2,102,656
260,416 114.4%
-41.4%
260,41693,896
0
260,416
-41.4%12.4%

93,896
0 120,166
260,4162.8%
0.0%

3.6% 93,896
6.4%
12.4%
0 12.4%

2.8%
3.6% -5.5%
3.4%
0.0% 12.4%

6.4% 2.8%
12.4%
0.0%$56.18
$72.91

3.4% 12.4%
6.4%$55.99
3.4%$56.10
29,724 -19.8%
306,827
-5.5%
$0.00 $56.18
$72.91 -5.5%
$72.91 $55.99
$0.00$56.18
$72.91 37.6%
16.0% $56.10
$72.91$55.99
$0.00306,827
232,412 37.6%
16.0%$56.10
$72.91-19.8%
-43.3% 306,827
232,41237.6%
16.0% 188,250
-43.3%
232,412

32,785
29,724
-19.8%
188,250
188,250
-43.3%

32,785
29,724
188,250
188,250

32,785
188,250

Chelsea 21
2

97,827
0 305,238
0 1.7%
0.0%

5.4%
0.0% 97,827
0 7.1%
0.0%

1.7%
0.0% 5.4%
0.0% 2.6%
0.0%

7.1%
0.0% 1.7%
0.0%$57.61
$0.00

2.6%
32.9% 440,055
32.9%440,055
0.0% 7.1%
0.0%$39.15
$0.00 $57.61
$0.00 2.6%
0.0%$55.27
$0.00 $39.15
$0.00$57.61
$0.00 32.2%
N/A $55.27
$0.00$39.15
$0.00440,055
63,285 32.2%
N/A $55.27
$0.00 334.9%
63,28532.2%
N/A (26,292)
0 334.9%
63,285

(55,182)
32.9%
0 (26,292)
0334.9%

(55,182)
(26,292)
0 0

(55,182)
0

2,141,315
29,468,182
1,737,823
2,141,315
403,492
35.3%
1,737,823
684,98729,468,182
14,382,706186
27 35.3%
5.3% 2,141,315
684,987
14,382,706
627,077 35.3%
5.3%
684,987
57,910 1,737,823
627,077
5.3% 5.9%
4.4% 403,492
57,910
627,0771.4%
0.4%

5.9%
4.4%403,492
57,9107.3%
4.8%

1.4%
0.4% 5.9%
4.4% 2.0%
0.2%

7.3%
4.8% 1.4%
0.4%$52.57
$68.26

2.0%
2,229,274
-3.2% 2,229,274
14.3%
-3.2%
2,229,274
(66,346)
-3.2%
0.2% 7.3%
4.8%$48.93
$39.07 $52.57
$68.26 2.0%
0.2%$52.03
$63.59 $48.93
$39.07$52.57
$68.2614.3%
10.7% $52.03
$63.59$48.93
$39.07
665,892 14.3%
10.7%$52.03
$63.59-13.1%
665,892
10.7% (66,346)
53,772-13.1%
665,892 (171,989)
59,612
53,772
-13.1%

(171,989)
(66,346)
59,612
53,772

(171,989)
59,612

Totals 186
27

5,674,398
Chelsea
2,788,000

21
2

29,468,182
Totals 186
14,382,706
27

403,065
305,238
59.8%
305,238
0 5,674,398
2,788,000 21
2 59.8%
N/A 403,065
0 5,674,398
2,788,000
0
N/A403,065
0 97,827
0
0 59.8%
N/A 5.4%
0.0%

$49.39
$46.54
1,391,841
5.4%$43.49
$49.39 2.0%
5.4% (134,478)
35,103 2.0%
$43.49$39.07
370,195 -4.8%
8.2% 1,391,841
370,195-4.8%
8.2%1,391,841
370,195

WN SOUTH
MIDTOWN
NEW YORK
SOUTH
OFFICE
MIDTOWN
NEW
MARKET
YORK
SOUTH
OFFICE
NEW
MARKET
YORK OFFICE MARKET
Class C
C
tatistical Summary
B Statistical Class
Summary
B Statistical Summary

Fourth Quarter 2012

Fourth Quarter 2012
Fourth Quarter 20

Number of
Buildings
Submarket

Y-o-Y Total
Y-o-YTotalY-o-Y
Y-o-Y
Y-o-Y
Y-o-Y
Total
Direct Y-o-YTotal
Sublease DirectY-o-YDirect Sublease
Direct
Sublease Direct
Sublease
Total Sublease
DirectY-o-Y Total
Sublease
Direct Y-o-YTotal
Sublease DirectY-o-YTotal Sublease
DirectY-o-Y Total
Sublease
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
% Change
% Change
% Change
% Pt. Change
% Pt. Change
% Avg.
Pt. Change
Change
ChangeLeasing
% Change
% Change
% Change
Number ofAvailable
Number
of Available Available
Available
Available
Available
VacancyAvailable
Available
VacancyVacancy
Available
VacancyVacancy
Vacancy
Vacancy
Vacancy
Wtd. Avg.
Vacancy
Wtd. Avg.
Wtd.
Wtd. Avg.
Wtd. Wtd.
Avg. %
Avg.
Wtd. Wtd.
Avg. Avg.
Leasing% Change
Wtd. %
Avg.
Direct Absorption
Leasing
Total
Direct
Absorption
Absorption
Space
Rental Rate Rate
Rental Rate
Rental Rate
Rental Rate
RentalRental
Rate Rate
Rate Rate
Activity
Rental Rate
RateRate
Buildings Space Inventory
Buildings
Space
SpaceSpace Space Rate SpaceSpace Rate Rate Space Rate Rate Rate Rate Rate

RentalRental
Activity Rate Activity
Inventory
Submarket
Inventory

SoHo

2,972,906
SoHo
1,113,748

121,016
2,972,906 11
36 -19.1%
71.1% 121,016
2,972,906
99,855
71.1%121,016
71.1% 3.4%
6,394 1,113,748
6,394
1,113,748
4,782 -19.1%
6,394 21,161
1,612 99,855
4,782-19.1%
0.4%

21,161
1,61299,855
4,782 0.7%
0.1%

3.4%
0.4% 21,161
1,612 4.1%
0.6%

0.7%
1.6%
0.1% 3.4%
0.4% -0.1%

4.1%
$47.27
0.6% 0.7%
0.1%$43.18

1.6% 4.1%
$47.27 -0.1%
1.6%$43.18
$47.45 $50.03
$47.27 -6.7%
-0.7%
-0.1%
0.6%$50.03
$0.00 $43.18
$0.00$43.18

1,429,050
203,155 3,121,328
1,429,050 18418.7%
-22.0% 172,903
203,155
1,429,050
203,155 418.7%
-22.0%
203,15512,420
0
203,155
-22.0%14.2%
3,121,328
Greenwich/NoHo
18
172,903
3,121,328
160,483
172,903
160,483
418.7%
5.1%

0 160,483
203,1550.4%
0.0%
12,420

14.2%
0 14.2%
5.1% 12,420
5.5%

0.0% 14.2%
0.4%
5.1% -4.0%
4.4%

14.2%
0.0%$39.83
5.5% 0.4%
$60.56

-4.0%
4.4% 14.2%
5.5% $0.00

on Square

Madison/Union
79
Square16,210,488
5,609,860
Madison/Union
79 Square
138,43716,210,488
5,609,860 125
79 -24.8%
138,437
5,609,860
118,577 -24.8%
138,437
19,860 1,147,154
118,577-24.8%
125
125
1,344,891
13.1% 1,344,891
16,210,488
1,147,154
13.1%
1,344,891
197,737
13.1% 2.1%
7.1%

19,860
118,5770.4%
197,737
1,147,154
1.2%

2.1%
19,860 2.5%
7.1%197,737
8.3%

0.4%
1.2% 2.1%
7.1% -0.8%
1.3%

2.5%
8.3% 0.4%
1.2%$38.26
$49.77

W. Village

Hudson Sq./W.
23
Village 4,803,110
Hudson Sq./W.
23
920,488
-0.9% 920,488
4,803,110
910,488
-0.9%920,488
-0.9% 19.0%
11
3,348,220
11 Village
214,062 4,803,110
3,348,220 23
11114.4%
214,062
3,348,220
120,166 114.4%
214,06210,000
93,896 910,488
120,166
114.4%
3.6%

10,000
910,488
93,896
120,1660.2%
2.8%

19.0%
3.6% 10,000
93,89619.2%
6.4%

0.2%
2.8% 19.0%
3.6% -0.2%
3.4%

19.2%
6.4% 0.2%
2.8%$45.17
$56.18

Chelsea 61
21

13,212
378,468
97,827
305,2380.2%
1.7%

5.8%
5.4% 13,212
97,827 6.0%
7.1%

0.2%
1.7% 5.8%
5.4% -2.0%
2.6%

6.0%
7.1% 0.2%
1.7%$44.48
$57.61

-2.0%
2.2% $44.21
2.2%$44.21
2.2% (36,444)
2.6% 6.0%
7.1%$37.41
$39.15 $44.48
$57.61 -2.0%
2.6%$44.21
$55.27 $37.41
$39.15$44.48
$57.61 32.2%
$55.27$37.41
$39.15274,300
440,055 32.2%
$55.27-17.3%
32.9% 274,300
440,05532.2%
(26,292)-17.3%
32.9%274,300
440,055

1,774,776
21,384,607
-9.3% 1,774,776
21,384,607
1,710,543
-9.3%
1,774,776
64,233 1,710,543
-9.3% 8.0%
64,233
1,710,543
0.3%
2,141,315
29,468,182217
18635.3%
2,141,315
29,468,182
1,737,823 35.3%
2,141,315
403,492
1,737,823
35.3%
5.9% 403,492
1,737,823
1.4%

8.0%
64,2338.3%
5.9%403,492
7.3%

0.3%
1.4% 8.0%
5.9% -1.0%
2.0%

8.3%
7.3% 0.3%
1.4%$43.98
$52.57

oHo

Year-to-Date
Year-to-Date
Total
Direct
Absorption
Absorption
Rate
Rate

36
11

Greenwich/NoHo
18

Totals 217
186

6,569,681
Chelsea
5,674,398

36
11

61
21

21,384,607
Totals 217
29,468,182
186

391,680
6,569,681
378,468
-23.6%
403,065 6,569,681
5,674,398 61
21 -23.6%
59.8% 391,680
403,065
5,674,398
305,238 -23.6%
59.8%391,680
403,06513,212
97,827 378,468
305,238
59.8% 5.8%
5.4%

(4,135)
8,607
35.9%
13,829
15,441
-47.3%

(4,135)
8,607
13,829
15,441

(4,135)
13,829

54,912
26,602
(132,742)
(120,322)

54,912
(132,742)

-0.8%
$0.00 $38.26
$0.00$38.26
$0.001,391,841
247,320 15.2%
247,32015.2%
247,320
1.3% 2.5%
8.3%$46.54
$49.77 -0.8%
1.3%$38.26
$49.39 $46.54
$49.77 15.2%
5.4% $38.26
$49.39$46.54
5.4%$38.26
$49.39-45.4%
2.0% 1,391,841
5.4% 77,099
35,103 -45.4%
2.0%1,391,841

59,739
77,099
-45.4%
(30,679)
35,103
2.0%

59,739
77,099
(30,679)
35,103

59,739
(30,679)

-0.2%
1.9% $45.03
1.9%$45.03
2.5% 319,758
1.9% (20,865)
2.5%319,758
3.4% 19.2%
6.4%$32.00
$55.99 $45.17
$56.18 -0.2%
3.4%$45.03
$56.10 $32.00
$55.99$45.17
$56.18 37.6%
$56.10$32.00
$55.99319,758
306,827 37.6%
$56.10-19.8%
306,82737.6%
29,724 -19.8%
306,827

(7,975)
(20,865)
2.5%
32,785
29,724
-19.8%

(7,975)
(20,865)
32,785
29,724

(7,975)
32,785

(47,598)
(36,444)
-17.3%
(55,182)
(26,292)
32.9%

(47,598)
(36,444)
(55,182)
(26,292)

(47,598)
(55,182)

-1.0%
5.8% $43.88
1,179,936
5.8%$43.88
5.8% (66,346)
54,999-13.6%
1,179,936
54,943
54,999
-13.6%
2.0% 8.3%
7.3%$37.92
$48.93 $43.98
$52.57 -1.0%
2.0%$43.88
$52.03 $37.92
$48.93$43.98
$52.5714.3%
$52.03$37.92
$48.93
2,229,274 14.3%
$52.03-13.6%
-3.2% 1,179,936
2,229,274
14.3%
-3.2%
2,229,274 (171,989)
(66,346)
-3.2%

54,943
54,999
(171,989)
(66,346)

54,943
(171,989)

$0.00$39.83
$60.56 10.6%
30.9% $39.83
$60.56$0.00 72,257
59,307

WN SOUTH
MIDTOWN
NEW YORK
SOUTH
OFFICE
MIDTOWN
NEW
MARKET
YORK
SOUTH
OFFICE
NEW
MARKET
YORK OFFICE MARKET
tatistical Summary
Overall
Summary
Class C StatisticalOverall
Class
C Statistical Summary

10.6%
-1.9% 72,257
26,602 -64.4%
-1.9%72,257
30.9%$39.83
$60.56-64.4%
59,30710.6%
30.9% (120,322)
59,307

Fourth Quarter 2012

Fourth Quarter 2012
Fourth Quarter 20

Number of
Buildings
Submarket

Y-o-Y Total
Y-o-YTotalY-o-Y
Y-o-Y
Y-o-Y
Y-o-Y
Total
Direct Y-o-YTotal
Sublease DirectY-o-YDirect Sublease
Direct
Sublease Direct
Sublease
Total Sublease
DirectY-o-Y Total
Sublease
Direct Y-o-YTotal
Sublease DirectY-o-YTotal Sublease
DirectY-o-Y Total
Sublease
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
% Change
% Change
% Change
% Pt. Change
% Pt. Change
% Avg.
Pt. Change
Change
ChangeLeasing
% Change
% Change
% Change
Number ofAvailable
Number
of Available Available
Available
Available
Available
VacancyAvailable
Available
VacancyVacancy
Available
VacancyVacancy
Vacancy
Vacancy
Vacancy
Wtd. Avg.
Vacancy
Wtd. Avg.
Wtd.
Wtd. Avg.
Wtd. Wtd.
Avg. %
Avg.
Wtd. Wtd.
Avg. Avg.
Leasing% Change
Wtd. %
Avg.
Direct Absorption
Leasing
Total
Direct
Absorption
Absorption
Space
Rental Rate Rate
Rental Rate
Rental Rate
Rental Rate
RentalRental
Rate Rate
Rate Rate
Activity
Rental Rate
RateRate
Buildings Space Inventory
Buildings
Space
SpaceSpace Space Rate SpaceSpace Rate Rate Space Rate Rate Rate Rate Rate

RentalRental
Activity Rate Activity
Inventory
Submarket
Inventory

SoHo

4,086,654
2,972,906
SoHo

Year-to-Dat
Total Absorpt
Rate

127,410
4,086,654
104,637
121,016 4,086,654
2,972,906 47
36 62.1%
71.1% 127,410
121,016
2,972,906
99,855 62.1%
71.1%127,410
121,01622,773
21,161 104,637
99,85562.1%
71.1% 2.6%
3.4%

22,773
104,637
21,161
99,855 0.6%
0.7%

2.6%
3.4% 22,773
21,161 3.1%
4.1%

0.6%
0.7% 2.6%
3.4% 1.1%
1.6%

3.1%
4.1% 0.6%
0.7%$47.04
$47.27

1.1%
1.6% 3.1%
4.1%$50.03 $47.04
$47.27 1.1%
1.6%$47.22
$47.45 $50.03$47.04
$47.27 -0.9%
-0.7%

12,420
363,6380.0%
0.3%
0 203,155

7.8% 12,420
8.1%
14.2%
0 14.2%

0.3% 14.2%
7.8% -4.0%
1.6%
0.0%

8.1% 0.0%
0.3%$39.83
$48.62
14.2%

1.6% 14.2%
8.1% $0.00
-4.0%

on Square

221
221
1,907,899
20.8% 1,907,899
31,192,398
1,632,392
20.8%
1,907,899
275,507
20.8% 2.1%
5.2%
Madison/Union
79
Square31,192,398
5,609,860
Madison/Union
79 Square
138,43731,192,398
5,609,860 221
79 -24.8%
138,437
5,609,860
118,577 -24.8%
138,437
19,860 1,632,392
118,577-24.8%

275,507
1,632,392
0.9%
19,860
118,5770.4%

5.2%275,507
6.1%
2.1%
19,860 2.5%

0.9% 2.1%
5.2% -0.8%
1.1%
0.4%

6.1% 0.4%
0.9%$38.26
$48.53
2.5%

1.1% 2.5%
6.1%$44.26
$48.53 -0.8%
1.1%$38.26
$47.93 $44.26
$48.53 15.2%
6.1% $38.26
$47.93$44.26
6.1%$38.26
$47.93-45.4%
-6.9% 2,009,356
6.1% (22,276)
-6.9%
2,009,356
-0.8%
$0.00 $38.26
$0.00$38.26
$0.002,009,356
247,320 15.2%
247,32015.2%
77,099 -45.4%
247,320

(99,578)
(22,276)
-6.9%
59,739
77,099
-45.4%

(99,578)
(22,276)
59,739
77,099

(99,578)
59,739

W. Village

41
41 Village
1,394,966
41 -0.9%
-5.3% 1,394,966
10,253,986
1,291,070
-5.3%
1,394,966
103,896
-5.3% 19.0%
12.6% 103,896
1,291,070
1.0%
Hudson Sq./W.
23
Village 10,253,986
4,803,110
Hudson Sq./W.
23
920,48810,253,986
4,803,110 23
920,488
4,803,110
910,488 -0.9%
920,488
10,000 1,291,070
910,488-0.9%
10,000
910,4880.2%

12.6%103,896
13.6%
19.0%
10,00019.2%

1.0% 19.0%
12.6% -0.2%
0.2%

13.6% 0.2%
1.0%$45.17
$51.58
19.2%

13.6%$32.00
$53.68 $45.17
$51.58 -0.2%$45.03
$51.74 $32.00
$53.68$45.17
$51.58 1.9%
4.3%
-0.2% 19.2%

4.3%$45.03
$51.74-22.2%
858,9971.9%
4.3% 197,109
858,997
1.9%
2.5% 319,758
(20,865)-22.2%
2.5%319,758

213,060
197,109
-22.2%
(7,975)
(20,865)
2.5%

213,060
197,109
(7,975)
(20,865)

213,060
(7,975)

Greenwich/Noho
37
Greenwich/NoHo
18

84
Chelsea 61
430
Totals 217

15,032,079
6,569,681
Chelsea

47
36

Year-to-Date
Year-to-Date
Direct
Absorption
Absorption
Total
Rate
Rate

4,670,378
Greenwich/Noho
37
376,058 1,429,050
4,670,378 18
37 -22.0%
28.0% 203,155
376,058
4,670,378
363,638 -22.0%
28.0%203,155
376,05812,420
363,638-22.0%
28.0% 14.2%
7.8%
1,429,050
Greenwich/NoHo
18
203,155
1,429,050
203,155
0
203,155

oho
oHo

47
36

Year-to-Dat
Total Absorpt
Rate

54,912
26,602
-1.9%
(132,742)
(120,322)
-64.4%

$39.83
$60.56 -4.0%
4.4%$39.83
$60.56

$47.45$50.03
-0.7%$43.18
$47.45-47.3%
35.9% 266,301
-0.7% 15,441
8,607 -47.3%
35.9%266,301
$43.18
$0.00266,301
31,244 -6.7%
31,244-6.7%
31,244

Year-to-Date
Year-to-Date
Direct
Absorption
Absorption
Total
Rate
Rate

84
61

65,235,495
430
21,384,607
Totals 217

794,74515,032,079
84 -23.6%
3.9% 391,680
794,745
15,032,079
683,706 -23.6%
3.9%391,680
794,745
111,039
683,706
3.9% 5.8%
4.5%
391,680
6,569,681 61
6,569,681
378,468
13,212 378,468
-23.6%

$48.62 -4.0%
1.6%$39.83
$48.62
$39.83

$47.22
$47.45$50.03297,545
266,301 -0.9%
-0.7%$47.22
$47.45 16.6%
35.9% 297,545
266,301-0.9%
-0.7% 24,048
8,607 16.6%
35.9%297,545
266,301

9,69424,048
16.6%
(4,135)
8,607
35.9%

9,694
24,048
(4,135)
8,607

9,694
(4,135)

$48.62 10.6%
31.6% $39.83
$48.62$0.00131,564
31.6%$39.83
$48.62-45.2%
31.6% (93,720)
$0.00$39.83
72,257 10.6%
-1.9% 131,564
72,25710.6%
26,602 -45.2%
-1.9%131,564
72,257

(77,830)
(93,720)
-45.2%
54,912
26,602
-1.9%

(77,830)
(93,720)
54,912
26,602

(77,830)
54,912

$51.74$32.00
$53.68319,758
858,997
$45.03

111,039
683,7060.2%
0.7%
13,212
378,468

4.5%111,039
5.3%
5.8%
13,212 6.0%

0.7% 5.8%
4.5% -2.0%
0.1%
0.2%

5.3% 0.2%
0.7%$44.48
$50.95
6.0%

0.1% 6.0%
5.3%$37.41
$38.77 $44.48
$50.95 -2.0%
0.1%$44.21
$49.93 $37.41
$38.77$44.48
$50.95 19.3%
$49.93$37.41
$38.77274,300
777,640 19.3%
$49.93-17.3%
14.8% 274,300
777,64019.3%
(62,736)-17.3%
14.8%274,300
777,640
-2.0%
2.2% $44.21
2.2%$44.21
2.2% (36,444)

(102,780)
(62,736)
14.8%
(47,598)
(36,444)
-17.3%

(102,780)
(62,736)
(47,598)
(36,444)

(102,780)
(47,598)

4,601,078
65,235,495217
430-9.3%
9.8% 1,774,776
4,601,078
65,235,495
4,075,443 -9.3%
9.8%
4,601,078
525,635
4,075,443
9.8% 8.0%
6.2% 525,635
4,075,443
0.8%
1,774,776
21,384,607
21,384,607
1,710,543
1,774,776
64,233 1,710,543
-9.3%
64,233
1,710,543
0.3%

6.2%525,635
7.1%
8.0%
64,2338.3%

0.8% 8.0%
6.2% -1.0%
0.6%
0.3%

7.1% 0.3%
0.8%$43.98
$50.02
8.3%

0.6% 8.3%
7.1%$37.92
$46.46 $43.98
$50.02 -1.0%
0.6%$43.88
$49.69 $37.92
$46.46$43.98
$50.02 5.8%
8.3% $43.88
$49.69$37.92
$46.46
4,075,102 5.8%
8.3%$43.88
$49.69-13.6%
-8.1% 1,179,936
4,075,102
8.3% 54,999
42,425-13.6%
-8.1%
4,075,102
-1.0%
1,179,936
5.8%
1,179,936

(57,434)
42,425
-8.1%
54,943
54,999
-13.6%

(57,434)
42,425
54,943
54,999

(57,434)
54,943

WN SOUTH
MIDTOWN
NEW YORK
SOUTH
OFFICE
MIDTOWN
NEW
MARKET
YORK
SOUTH
OFFICE
NEW
MARKET
YORK OFFICE MARKET
tatistical Summary
Overall StatisticalOverall
Summary
Statistical Summary

oho

on Square

W. Village

Fourth Quarter 2012

Fourth Quarter 2012
Fourth Quarter 20

7.1%: At the conclusion of the fourth quarter of 2012, Midtown South remained the
tightest office market in the United States, despite a 0.6 percent year-over-year percentage uptick and a slash in availability in the countrys second-tightest office market.
SoHo 47
4,086,654
SoHo
47
127,410 4,086,654 47 62.1% 127,410
4,086,654
104,637 62.1%127,41022,773 104,63762.1% 2.6% 22,773
104,6370.6%
2.6% 22,773 3.1%
0.6% 2.6% 1.1%
San Franciscos
vacancy rate declined
in the fourth quarter, while
Midtown
South
has
Greenwich/Noho
37
4,670,378
Greenwich/Noho
37
376,058 4,670,378 37 28.0% 376,058
4,670,378
363,638 28.0%376,05812,420 363,63828.0% 7.8% 12,420
363,6380.3%
7.8% 12,420 8.1%
0.3% 7.8% 1.6%
said
Mr.31,192,398
Mazur.
So
they
are narrowing
the
gap,
both
heavy
marMadison/Union
221 increased,
Square31,192,398
Madison/Union
221 Square
1,907,899
22120.8%
1,907,899
31,192,398
1,632,392
20.8%
1,907,899
275,507 1,632,392
20.8%
5.2% and
275,507
1,632,392
0.9% are
5.2%tech
275,5076.1%
0.9% 5.2%
1.1%
Hudson Sq./W.
41 kets.
VillageHowever,
10,253,986
Hudson Sq./W.
41 Village
1,394,966
10,253,986South
41 -5.3% 1,394,966
10,253,986
1,291,070
-5.3%
1,394,966
103,896 1,291,070
-5.3% 12.6%
1,291,070
1.0% 12.6%103,89613.6% 1.0% 12.6% -0.2%
Midtown
still
has
the
lowest
vacancy
in103,896
the
country.
Number of
Buildings
Submarket

Year-to-Date
Year-to-Date
42,425: In a feat unseen since 2005-2006, all three major Manhattan office markets
Total
Direct
Absorption
Absorption
boasted back-to-back positive absorption between 2011 and 2012. Thats a good omen for
Rate
Rate
2013, to say the least.

Y-o-Y Total
Y-o-YTotalY-o-Y
Y-o-Y
Y-o-Y
Y-o-Y
Total
Direct Y-o-YTotal
Sublease DirectY-o-YDirect Sublease
Direct
Sublease Direct
Sublease
Total Sublease
DirectY-o-Y Total
Sublease
Direct Y-o-YTotal
Sublease DirectY-o-YTotal Sublease
DirectY-o-Y Total
Sublease
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
Year-to-Date
% Change
% Change
% Change
% Pt. Change
% Pt. Change
% Avg.
Pt. Change
Change
ChangeLeasing
% Change
% Change
% Change
Available
Available
Available
VacancyAvailable
Available
VacancyVacancy
Available
VacancyVacancy
Vacancy
Vacancy
Vacancy
Wtd. Avg.
Vacancy
Wtd. Avg.
Wtd.
Wtd. Avg.
Wtd. Wtd.
Avg. %
Avg.
Wtd. Wtd.
Avg. Avg.
Leasing% Change
Wtd. %
Avg.
Direct Absorption
Leasing
Total
Direct
Absorption
Absorption
Number ofAvailable
Number
of Available Available
Buildings Space Inventory
Buildings
Space
Rental Rate Rate
Rental Rate
Rental Rate
Rental Rate
RentalRental
Rate Rate
Rate Rate
Activity
Rental Rate
RateRate
Space
SpaceSpace Space Rate SpaceSpace Rate Rate Space Rate Rate Rate Rate Rate

RentalRental
Activity Rate Activity
Inventory
Submarket
Inventory
3.1% 0.6%$47.04

1.1% 3.1%$50.03 $47.04 1.1%$47.22 $50.03$47.04 -0.9%

8.1% 0.3%$48.62

1.6% 8.1% $0.00

6.1% 0.9%$48.53

1.1% 6.1%$44.26 $48.53 1.1%$47.93 $44.26$48.53 6.1%

$48.62 1.6%$48.62

$47.22$50.03297,545 -0.9%$47.22 16.6% 297,545-0.9% 24,048 16.6%297,545

9,69424,048
16.6%

9,694
24,048

9,694

$0.00$48.62 31.6% $48.62$0.00131,564 31.6%$48.62-45.2% 131,56431.6% (93,720)-45.2%

131,564

(77,830)
(93,720)
-45.2%

(77,830)
(93,720)

(77,830)

(99,578)
(22,276)
-6.9%

(99,578)
(22,276)

(99,578)

$47.93$44.26
2,009,356 6.1%$47.93 -6.9% 2,009,3566.1% (22,276)-6.9%
2,009,356

$60.56:
Class B office properties in Greenwich Village/Noho, Hudson (62,736)
Square/West
0.1% 5.3%$38.77 $50.95 0.1%$49.93 $38.77$50.95 19.3% $49.93$38.77777,640 19.3%$49.93 14.8% 777,64019.3% (62,736)14.8%777,640 (102,780)
14.8%
(102,780)
(62,736)
Village and Madison/Union Square all saw rental rates increase by more than 30 percent.
Totals 430
65,235,495
Totals 430
4,601,078
65,235,495430 9.8% 4,601,078
65,235,495
4,075,443 9.8%
4,601,078
525,6354,075,443
9.8% 6.2% 525,635
4,075,443
0.8%
6.2%525,6357.1%
0.8% 6.2% 0.6%
7.1% 0.8%$50.02 0.6% 7.1%$46.46 $50.02 0.6%$49.69 $46.46$50.02 8.3% $49.69$46.46
4,075,102 8.3%$49.69 -8.1% 4,075,102
8.3% 42,425 -8.1%
4,075,102 (57,434)
42,425
-8.1%
(57,434)
In Greenwich Village/Noho in particular, the rental rate of $60.56 per square foot is the42,425
highest its been since 2007, said Mr. Mazur.
Madison/Union Square: Along with Chelsea, the Madison/Union Square submarket
experienced Midtown Souths biggest spike in vacancies. While still hovering at a respectable 6.1 percent after a 2 percent uptick, a small group of fleeing tenants contributed to an
overall rise in vacancies. Its the kind of problem every other market in the country would
-8.1%: While leasing activity is down in Midtown South since last year, the numbers
like to have, said Mr. Mazur.
look downright healthy in comparison with the Midtown and Downtown office markets,
where activity is off by a whopping 20 percent. I think its odd to say that a negative number is pretty healthy, but youre also comparing it to a very strong year-end last year, and
were also experiencing a very strong recovery.

OTE: Only space that

can be84
occupied
NOTE:within
Only space
six
months
that can
from
be84
the
occupied
NOTE:
endOnly
of
within
the
space
current
six
that
months
month
can be
from
is
occupied
included
the
end
within
in
of
statistics.
thesix
current
months
month
from is
the
included
end of
in
thestatistics.
current
month
is included
in statistics.
Chelsea
15,032,079
Chelsea
794,745
15,032,079
84
3.9%
794,745
15,032,079
683,706
3.9%
794,745
111,039
683,706
3.9% 4.5%
111,039
683,7060.7%

urce: Cushman and Wakefield Research

Source: Cushman
Services and Wakefield
Source:
Research
Cushman
Services
and Wakefield Research Services

OTE: Only space that can be occupied

NOTE:within
Only space
six months
that can
from
be the
occupied
NOTE:
endOnly
ofwithin
the
space
current
sixthat
months
month
can be
from
is
occupied
included
the end
within
in
ofstatistics.
thesix
current
months
month
from is
the
included
end of in
thestatistics.
current month is included in statistics.

urce: Cushman and Wakefield Research

Source: Cushman
Services and Wakefield
Source:
Research
Cushman
Services
and Wakefield Research Services

22|JANUARY 8, 2013|THE COMMERCIAL OBSERVER

4.5%111,0395.3%

0.7% 4.5% 0.1%

13.6% 1.0%$51.58
5.3% 0.7%$50.95

Year-to-Dat
Total Absorpt
Rate

-0.2% 13.6%$53.68 $51.58 -0.2%$51.74 $53.68$51.58 4.3%

$51.74$53.68858,997

4.3%$51.74-22.2% 858,9974.3% 197,109-22.2%

858,997

213,060
197,109
-22.2%

213,060
197,109

213,060
(102,780)
(57,434)