NYC Office Market Report, Third Quarter 2018

NYC OFFICE MARKET REPORT, THIRD QUARTER 2018

NYC Office Market Report, Third Quarter 2018 was compiled using data provided by Costar, the Commercial Real Estate Information Company. This report is written for business owners that need accurate information about the local office market. 

 

In the third quarter of 2018 the average quoted rent in the NYC office market across all building classes (A, B & C quality) was $61.52 per square foot. This is a $1.19 PSF increase compared to $60.33 in the second quarter. The vacancy rate in the third quarter was 7.7%, a reduction from the prior quarter’s 8.0%.  Additional market data is found below.

NYC Office Market Rents and Vacancy by Neighborhood

Third quarter 2018 average quoted office rents and vacancy by neighborhood is found in the table below.

NOTE: (a) The tables above list the average quoted asking rent reported to Costar. Some office buildings do not publish this information. (b) After lease negotiation the actual contract rent is usually lower.

 

5 Largest NYC Office Leases Signed in Q3 2018

Bessemer Trust Company N.A.: 239,000 RSF at 1271 Avenue of the Americas in Columbus Circle. 

WeWork: 216,858 RSF at 21 Penn Plaza in the Penn Plaza/Fashion district. 

Evercore Partners: 154,828 RSF at Park Avenue Plaza (55 East 52nd Street) in the Plaza district.  

 116,055 RSF at 530 Fifth Avenue in Times Square. 

 

Spaces: 109,364 RSF at Chrysler Building (405 Lexington Avenue) in Grand Central.

3 of the Top 5 Leases were signed by shared work space providers. It is estimated that this industry now occupies 3.5% of the total office space in New York City.

 

TOP 5 NYC OFFICE CONSTRUCTION PROJECTS

There was 3,051,211 square feet of office space being constructed during the second quarter of 2018. 

55 Hudson Yards

55 Hudson Yards (550 West 34th St.): 1,556,136 RSF. Delivery Q4 2018. 88% pre-leased. Developer- The Related Companies. 

One Manhattan West (400 West 33rd St.): 2,216,609 RSF. Delivery Q1 2019.  86% pre-leased. Developer- Brookfield Office Properties. 

30 Hudson Yards (500 West 33rd St.):  2,600,000 RSF. Delivery Q3 2019. 100% pre-leased. Developer- Oxford Properties Group. 

One Vanderbilt Avenue: 1,732,955 RSF. Delivery Q3 2020. 100% pre-leased. Developer- SL Green Realty Corp., Inc. For a construction tour link HERE. 

Two Manhattan West (385 Ninth Ave.): 1,950,140 RSF. Delivery Q1 2023. 0% pre-leased. Developer- Brookfield Office Properties. 

 

IDEAS FOR REDUCING NYC OFFICE EXPENSE

(1) Space Reduction and Redesign:  Businesses can reduce the size of their offices by modifying the design and reducing the area occupied by each employee. Use our office space calculator to estimate your essential requirement.

(2) Flex Work, Business Centers and Telecommuting: Flexible work schedules may allow two or more employees to utilize a specific work area. Some companies use hourly or daily rentals at off-site business centers for part-time staff and conferences. Where practical utilize telecommuting.

(3) Relocate for Savings: Consider moving from a high rent building to a more economical location. During the current real estate cycle many affordable Class B buildings have been substantially upgraded and provide new infrastructure and  modern work spaces.

ABOUT COGENT REALTY ADVISORS 

Cogent Realty Advisors is an independent and licensed NO FEE Realtor with over 15 years of experience representing businesses that lease NYC office space. Our goal is to help you find the right office at the right price. For information, phone Mitchell Waldman at (212) 509-4049.

#NYCOfficeQ32018

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712 Fifth Avenue Office Rental Guide for Elite Firms

712 Fifth Avenue Office Rental Guide

712 Fifth Avenue is a sleek office tower mostly occupied by elite financial firms. Its location at the south west corner of 56th Street is ideal for the fine dining, luxury shopping and 5-star hotels that its Tenant’s demand. 

 

 

 

 

 

 

Historic Context of 712 Fifth Avenue

As a condition for approving construction, the New York City Landmark commission required 712 Fifth Avenue to accommodate the landmark facades of the Coty and Rizzoli buildings on Fifth Avenue at the base of the tower. These buildings are now occupied by the Henri Bendel woman’s fashion store. For this reason the entrance to the office building is around the corner on West 56th Street.

 

 

Office Building & Design

Photo courtesy of Costar

712 Fifth Avenue was constructed in 1990 and designed by Kohn Pedersen Fox Associates. Full floors in the base of the building are 13,000 square feet and taper to 9,100 square feet at the top. With four exposures there is a high window to floor area ratio. Both office intensive and open landscape designs are bright, attractive and efficient. Tower floors have panoramic views that include Central Park and lower Manhattan.

712 Fifth Avenue offers both turn-key fully constructed office suites that are ready for immediate occupancy and vacant spaces that it will build-to-suit for financially qualified Tenants. When an office is custom-built a 7- 10 year lease term is required.  Sample offices are shown below:

2,680 – Fl 26. Pre-built.	3,127 RSF – Fl 9. New Office.
4,220 RSF – Fl. 32. New Office.	7,815 RSF – Fl 8. Pre-built.
9,813 RSF – Fl 33. Build to Suit.	9,886 RSF – Fl 47. Pre-built.

Office Pricing at 712 Fifth Avenue

For 2018/19 the asking rent for offices range from $83.00 to $160.00 per rentable square foot (PSF) depending on the location in the building. Cogent Realty has a track record negotiating lower rents and other leasing incentives like free rent for its clients. Call us for details, 212-509-4049.

 

Your Corporate HQ at 712 Fifth Avenue  

New lobby rendering

 Class A office tower, constructed in 1990. 

New entrance and lobby to be completed in 2019.

  24-hour, 7- day access. Uniformed lobby concierge.

  543,341 SF total building area. Concrete and steel construction. 52 stories tall and rising 650 feet.

 11 passenger and one freight elevator.

 Floors range from 9,100 to 13,000 RSF.

 10 foot ceiling heights.

 Central heating and air conditioning.

 Messenger  Center.

 Telecom providers include Lightpath, Cogent, Verizon, Broadview, Globalcom and Cablevision.

Owned by Paramount Group Inc., a pubic REIT.

 New York, NY 10019.

 

About Cogent Realty Advisors

Cogent Realty Advisors is an independent and licensed NO FEE Realtor with over 15 years of experience representing businesses that lease NYC office space. Our goal is to help you find the right office at the right price. For information, phone Mitchell Waldman at (212) 509-4049.

#712Fifth

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