Good Luck Finding Large Space

It was a blockbuster Q4 for leasing, and for Midtown this means the market has tightened enough that large-space users have limited supply from which to choose; they're beginning to see asking rents rise, said CBRE’s Patrick Murphy yesterday during the firm’s quarterly research breakfast at 200 Park. Patrick, here with Matt Van Buren, Darcy Stacom, and Bill Shanahan, notes that for smaller-space users, it’s still a tenants’ market, but landlords have definitelysensed a bottom and are becoming more aggressive with taking rents. Overall leasing activity in last year outpaced the weak ’09, with24.17M SF leased, a 44% jump. All three markets saw availability rates drop during the quarter.
Darcy noted the number of deals and transaction volume jumped to78 and $11.3B in 2010, compared to the cycle bottom of 41 and $3.3B the previous year—but it’s still far from the market peak of 245 and $49.1B in ’07. But as CMBS continues to re-enter the picture and buyer interest continues to strengthen, we should see anincreasingly strong market and limited available product this year, she points out. Bill added that Downtown saw few offerings in ’10, but that will change as more space is leased. The duo is fresh off of William Macklowe Co and ING Clarion Partners’ $45.2M purchase of 636 Avenue of the Americas, for which they repped seller APF Properties.

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