News
SLOWING THE SLIDE
January 14, 2010
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| This past summer wasn’t just about an uptick in leasing activity— tenants began withdrawing and absorbing sublease space as they became more confident in their needs and pricing certainty, we learned yesterday from CBRE office guru Matt Van Buren (right, with CBRE’s Phil Palmer and Ellen Rudin) at its 4Q media b'fast. December’s leasing numbers exceeded the 60-month average, and a 14-15% availability rate should be the peak, he adds. Asking rents are showing a much slower decline, and taking rents, which at their best accounted for 95% of the asking price, jumped from 67% to 83%, one-third up from the bottom. |
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| Global brokerage chair Steve Siegel says keep it in perspective—NYC is starting at a higher level than past downturns and rents will rise rapidly thanks to halted construction and a lack in new product. We snapped him here with CBRE’s Brad Gerla and Sheldon Cohen. Don’t believe predictions that Downtown will turn into a ghost town, he adds. The 24/7 market is returning, and people want to live in NYC for its safety and resiliency. Additionally, he notes that there are major financial service and technology firms that are hiring and seeking additional space. |
