MANHATTAN IN Q2
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|We assume research and stats must be popular, or else USA Todaywouldn't keep running those pie charts. So today you get three healthy helpings of it.|
|Just hours ago, we were at CBRE's Park Avenue offices, where were learned that Manhattan is witnessing continued withdrawals of space, a bottoming out of rents, and a significant reduction of quality availability, according to EVP Peter Turchin (center), who along with CBRE Econometric Advisors principal Jim Costello and Midtown head Matt Van Buren presented their Q2 findings. Year to date, we've seen 4.3M SF removed from the market, leading to a 4.7% direct availability decrease and a 22% drop in sublease space. Midtown, Midtown South, and Downtown have exceeded the 60-month average in leasing, and this year is beginning to resemble a more normal market, Matt adds—although availability stubbornly sits at 14%, he believes it's topping out.|
|And New York is heading out of the recession faster than the US, due to government support of the financial sector, notes Jim, who pointed out that the private service sector has been adding employees since October, while financial services was flat—the US is losing jobs in the latter, but we're seeing most of the cutbacks in the Southeast and Southwest, leaving NY more sheltered than other areas. We'll continue to add jobs this year, he notes, but the second half of the year will be slow—don't expect a pick-up for another year, but we should reach the previous peak in the service sector again by '13. Financial services? Perhaps another 10 years until peak, he adds.|