It’s beginning to look a lot like Xmas: Everywhere you go, there’s a troubled boutique hotel, retail is hurt as well, and office rents are sliding past their lows (yes, it’s a real estate sing-along).
… Yet the office market is nothing to sing about, except maybe for tenants who are now negotiating contracts with one year of free rent as normal course.
- Rents: September asking rents fell to $50.78 from $51.28/sq.ft., as per CBRE data, now down almost 30% from July ’08 peak prices of $71.92/sq.ft.
- Volume: Further, leasing volume dropped 19% from the previous month and 21% from the previous year.
- Inventory: To top it off, availability rates increased to 14.2% for Manhattan overall: downtown fared best with a mere 11.8% of space available for leasing over the next 12 months.
The silver lining is that some submarkets in the Midtown posted actual increases in asking rents … by a quarter ($0.25) to $64.08. Feel the warmth of the season.