We thought we would share some Manhattan-specific figures in the retail and office space arena for those who can’t get enough statistics. On the office side, inventory has doubled since last year both in terms of square feet (now 16 million) and the number of large blocks (now in 68 buildings). According to Colliers ABR, sublease space has increased dramatically from 3 large office blocks last year to 16 this year. Expectedly, rents appear to be off as much as 20-30%.
Turning to retail, storefront vacancy rate in Manhattan has topped 6.5% and is expected to exceed 10% by mid-2010. According to Cushman & Wakefield, the Fifth Avenue corridor between 42nd and 49th Streets has a 15.3% vacancy rate … ‘nothing to sneeze at.In Soho, 1 in 10 retail spaces are now empty among the restaurants, galleries and boutiques that the neighborhood boasts. All of this is to say that Manhattan’s economic picture should be front and center as we all look to predict what the city’s real estate landscape will look like over the next few quarters. If you have been trying to negotiate your lease with a reluctant landlord, now may be the time to look elsewhere for better deals.