CBRE issues September 2012 Manhattan Marketview Snapshot

Manhattan logged 1.87 million s/f of leasing during August, below the previous month's tally of 2.61 million s/f, but above the 1.53 million s/f of activity recorded in August 2011. Year-to-date leasing, at 14.78 million s/f, remained well below 2011's year-to-date total of 19.42 million s/f Meanwhile, Manhattan recorded 210,000 s/f of positive net absorption during the month. Year-to-date absorption levels, however, remained in negative territory at negative 2.21 million s/f By comparison, net absorption levels for the same period in 2011 were positive at 5.27 million s/f Manhattan's average asking rent remained stable at $56.11 per s/f, while the overall availability rate inched down 10 basis points to 10.9%. Among the reports' highlights: Midtown - With 1.26 million s/f of activity during August, Midtown recorded its second consecutive month of above-average leasing, topping its five-year monthly average of 1.15 million s/f by 10%. Year-to-date leasing totaled 8.19 million s/f, 31% below the 11.81 million s/f recorded during the same eight-month period in 2011. August's above-average leasing offset the relatively little amount of space placed on the market, resulting in positive absorption of 370,000 s/f for the month and a 20-basis-point decline in the availability rate to 11.9%. Year-to-date absorption levels remained in negative territory. Midtown's average asking rent remained stable at $64.73 per s/f; the month's $0.27 increase in average asking rent was due to the leasing of lower-priced space. Midtown South - Midtown South recorded 330,000 s/f of leasing activity during the month, matching its five-year monthly average. Year-to-date leasing, at 3.60 million s/f, continued to pace ahead of 2011's robust total of 3.27 million s/f Net absorption was virtually break-even for the month, as leasing activity was offset by several new availabilities brought to market, including 100,000 s/f of direct space at 401 Park Avenue South. The average asking rent remained stable at $52.50 per s/f, while the availability rate, at 8.3%, was unchanged from the previous month. Downtown - Downtown leasing activity totaled 280,000 s/f in August, 13% below the five-year monthly average of 320,000 s/f Year-to-date leasing, at 2.99 million s/f, significantly trailed 2011's year-to-date mark of 4.35 million s/f New availabilities added to the market, led by 136,000 s/f of direct space at 60 Wall Street, fueled the month's 150,000 s/f of negative absorption. As a result, the year-to-date absorption level dipped back into negative territory and the availability rate increased by 20 basis points to 10.4%. Downtown's average asking rent remained stable at $39.87 per s/f, with a slight $0.18 increase reflecting the leasing of lower-priced space during the month.