Category Archives: Capital Markets

The 2015 JLL Skyline Report is now Online!

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JLL’s Skyline Report is now available digitally!  The interactive website provides clients and prospects with market intelligence and insights on leading office buildings across the United States and Canada.

Visitors to the Skyline website can:

  • Discover the five themes shaping the Skyline today and in the future
  • Visualize key market metrics in 47 cities across the U.S. and Canada
  • Analyze more than a dozen data points on 1,000+ Trophy and Class A office buildings
  • Obtain a floor-by-floor leasing perspective
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Q1: Returned blocks combined with slower leasing activity to drive vacancy higher

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New York Office Outlook | Q1 2015

JLL’s New York Research team has just released its New York Office Outlook for the first quarter – a 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:

  • A number of available blocks of space—most of which had been anticipated by the market—were added during the first quarter that offset positive absorption
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No slowdown in the influx of foreign capital – flight to safety continues

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New York Chart of the Week

PowerPoint Presentation

Four of the top seven closed deals in Manhattan during the first quarter involved foreign buyers:

  • The strengthening dollar seen during 1Q 2015 has not slowed down the pace of the acquisition of real estate, as foreign capital continues to increasingly target core assets in the Manhattan gateway.
  • First quarter activity, for transactions valued at $360M and greater, came from Canadian pension
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Buy vs. Leasing in CRE: What’s the best decision for your business?

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Corporate real estate directors are constantly challenged to balance the opportunities of a dynamic capital markets environment with the operational and financial goals of their companies.

Many organizations follow a traditional course and have ownership or leasing strategies driven by longstanding financial policies. Some have implemented proactive strategies for selected properties—such as sale-leasebacks of owned assets or acquisitions of short-term leased assets—to take advantage of the current capital markets environment.

Historically these decisions have been driven by chief… Read More

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… Read More

Betting on the boroughs

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The Bronx: New York’s hippest office market

The following post was written by Megan Dolan and originally appeared as a Featured News Special on JLL’s Commercial Real Estate News Hub

Just over a month ago in New York, a former industrial warehouse turned loft-like office space with 93 percent occupancy sold for $114 million. See if you can guess where the building is located:

  1. Soho
  2. Tribeca
  3. Brooklyn
  4. The Bronx

If you guessed 4) you got lucky, were involved in the transaction or are keenly aware of New York’s hippest new office market. The sale of the landmarked BankNote building, at 890 Garrison Avenue in the Bronx’s Hunts Point neighborhood, is perhaps the most eye-catching deal in a borough that’s rife with redevelopment.

According to The Real Deal, Bronx saw $1.3 billion in real-estate deals in 2013 and another $895 million invested in real estate and development, an increase of nearly 33 percent since 2010.

Similar to the fashionable locations in Brooklyn and Queens, much of the capital in The Bronx went to convert the industrial properties that dominate the landscape into residential, retail and office space that investors are betting will yield superior returns to traditional investment submarkets in New York City.

Yields in the Bronx and other boroughs are in the five to six percent range — as much as 100 basis points over typical Manhattan returns.

“Manhattan will always be in the conversation about top real estate markets, but investors are a bit frustrated with the growing global demand relative to opportunities in Manhattan,” says JLL Vice Chairman Scott Latham.

“Investors are expanding their reach to Brooklyn, Queens and the Bronx, seeking growth corridors at a more attractive basis.”

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Midtown Class A Vacancy Falls Sharply

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Manhattan Office Outlook | September 2014

MOU_Sep14JLL’s New York Research team has just released its September 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 fell sharply in August to 10.7 percent from 11.2 percent in July while asking… Read More

Manhattan Office Outlook | August 2014

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Midtown South experiences an uptick in July

ManhattanOO_Aug2014JLL recently released its 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
Though leasing activity in Midtown was light for July, the Midtown Class A vacancy rate decreased to 11.2 percent from 11.5 percent… Read More

Q2 NY Office Outlook: Large block leasing activity drives vacancy lower as confidence increases

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Like the greater U.S. economy, recovery in the Manhattan office market has been slow but tangible.

Office_reportJLL’s Q2 New York Office Outlook reported on conditions in the nation’s largest office market over the quarter and the year so far.

Report highlights are as follows:

  • The Manhattan office vacancy rate fell to 10.6 percent from 11.1 percent – its lowest level in two years – as a result of several major leases
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JLL Relocates ICD to 123 William Street in New York

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Nonprofit organization to occupy entire 5th floor at Class B, 569,160-SF office building; JLL sold original headquarters at 407 First Avenue to fund relocation, establish endowment

JLL has completed the relocation of The Institute of Career Development to 123 William Street. The nearly 100-year-old nonprofit organization signed a 10-year lease for 24,391 square feet at the Class B, 569,160-square-foot commercial office building.

The tenant, ICD, was represented by Paul Mas, managing director, and Ellen Herman, executive vice president, both with JLL. The building owners, East End Capital Partners and GreenOak US, were represented by Howard Fiddle, vice chairman, and Bradley Gerla, executive vice president, both with CBRE Inc.

“JLL advised ICD on property management issues it faced as the owner of its original 77,000-square-foot headquarters at 407 First Avenue, and then arranged the sale of the property this past year,” said Mas. “We were able to find an ideal new home for ICD at 123 William Street and then assisted the organization in building out its new space on the fifth floor of the building.”

ICD, formerly known as the International Center for the Disabled, signed a 10-year lease for 24,391 square feet of space and will occupy the entire fifth floor at 123 William Street, which is located between John and Fulton streets in Lower Manhattan. The institute is relocating to the building from its previous offices at 407 First Avenue.

“ICD was extremely pleased with the competency and professionalism displayed by JLL,” said Les Halpert, executive director, with ICD. “I have worked with three separate divisions of the organization and each group was available, responsible, efficient, knowledgeable and helpful. It was a refreshingly rewarding experience.”

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