Midtown drives market according to Cassidy Turley's June Manhattan Market Report

Cassidy Turley, one of the leading commercial real estate service providers in the U.S., released their June Manhattan Market Report, which indicates Midtown is experiencing a strong recovery and Midtown South tightens even further. The picture is not nearly as bright for Downtown as more space is added. Encouraging employment figures and job creation continue to push the market upward. Manhattan's net positive absorption was 860,316 s/f in May. Demand for space in Midtown has picked up with positive absorption up over half a million s/f year-to-date. In May, 621,993 s/f of positive absorption was reported, dropping the availability rate down to 11.6%. The Fifth/Madison submarket improved considerably over the last two months as leasing activity picked up. In addition, the demand for high-end space with a growing number of tenants willing to pay more than $100 per s/f (24 such leases were signed so far this year compared to 34 throughout 2012) produced a drop in availability to 13% since the peak in February 2013 of 15.1%. More good news for Midtown South as the submarket continues to lead the way in recovery with availability dropping to 8.4%. Class A asking rents were up $0.07 per s/f to $69.34 and class B up $0.76 to $57.98 per s/f. News of a large block of office space coming onto the market pushed Downtown's availability rate up to 14.3% in May. Class A asking rents dipped $0.81 per s/f to $52.61 and class B inched up $0.13 to $36.21 per s/f. "By interpreting the increases or decreases in the market and applying that information to our clients' business goals, we are able to consistently provide best-in-class service," said Peter Hennessy, president, New York Tri-State Region Cassidy Turley.