Midtown & Lower Manhattan experience increased vacancy in January

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Manhattan Office Outlook | February 2015

MMU_Feb2015JLL’s New York Research team has just released its February Manhattan Office Outlook – a monthly wrap-up of leasing activity in Manhattan, including Class A vacancy and asking rates, along with a snapshot of conditions in capital markets.

Report highlights are as follows:

Midtown Manhattan
Midtown Class A vacancy rose to 11.4 percent in January from 10.7 percent at year-end 2014, as tepid new leasing activity combined with the addition of new product in the Penn Plaza/Garment District and returned space in the Plaza District.

Lower Manhattan
Two large availabilities and the absence of substantial leasing activity resulted in a sharp increase in the Lower Manhattan vacancy rate to start the year.

Midtown South Manhattan
After a near record-setting year, Midtown South activity slowed in the first month of 2015. Several properties were upgraded to Class A from Class B at the beginning of the year, which caused most of the shift in vacancy.

Capital Markets
The New York City investment sales market saw 442 deals close in 2014, shattering the previous record of 346 deals in 2007. 2014 was also the second most active year in terms of dollar volume, with $39.8 billion of activity, second only to the $48.5 billion closed in 2007.

Read the full report for more in-depth information about activity in the Manhattan office market.

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