CAN'T GET ENOUGH OF MIDTOWN SOUTH

Midtown South couldn't stay out of the highlight reel if it tried. (It's the George Clooney of NY CRE.) At CBRE’s Q3 Manhattan Market Research Media breakfast yesterday, we snapped Peter Turchin(happy 9th birthday to his son, Grant!), who says office leasing in the steamy submarket is distributed well among tenant sizes, helping lease rates rise to a record $53.40 (which is still cheaper than filling your gas tank). In Midtown and Downtown, rents have been flat all year, owing much to diminished activity in the 100k SF and larger blocks. Smart landlords are willing to partition those, as at 399 Park, where a 150k SF block has leased in increments of 50k, 25k, and 25k SF. It's a blip, not a sea change, he says, so large space users are not gone for good.
CBRE's Bradley Burwell says the city aims for last year's record 50 million visitors to rise to 55 million by 2015. Because NYC hotels serve both tourists and business travelers, they're pretty much at 85% occupancy, considered max. That means the city will need another 15,000 rooms by 2015. Despite hotels launching everywhere you look, 2012 has delivered the fewest rooms (1,594) than in any of the past four years; 4,114 werre delivered in 2011. Still, 4,700 are under construction and will open by 2014.

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Related Topics: 399 Park , George Clooney , Peter Turchin
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