DOWNTOWN NEW YORK OFFICE MARKET - THIRD QUARTER 2012

OFFICE MARKET
DOWNTOWN NEW YORK OFFICE MARKET
Class A Statistical Summary

POSTINGS
Y-o-Y

Total
Available
DOWNTOWN
Inventory SubmarketSpace

Direct

Sublease
Total

% Change
Number
Available
Available
NEW
YORKofOFFICE
MARKET Available
Buildings
Space
Space
Space

Inventory
Class A Statistical Summary
OFFICE
MARKET
DOWNTOWN
NEW
YORK
OFFICE
MARKET
6,298,488 City Hall 70,492
26.4% 7
9,489
6,298,488
61,003
70,492
Statistical Summary
11,902,802 Class
World A
Financial
445,816
7.4% 7
351,232
11,902,802
94,584
445,816
Total
Number
Available
663,315 Financial West
72,625
-51.3%
2 of
44,180
663,315
28,445
72,625
Buildings
Space
Submarket
Inventory
23,074,388 Financial3,352,077
East
-2.1% 21
2,782,300
23,074,388
569,777
3,352,077
Y-o-Y
Total
Direct
Sublease
Total
% Change
Number
Available
Available
Available
5,202,929 DOWNTOWN
Insurance
378,347
9 of
258,116
5,202,929
120,231
378,347
NEW 6.4%
YORK
OFFICE
MARKET Available
City Hall Space
7
6,298,488
70,492
Buildings
Space
Space
Space

Inventory Submarket
Inventory
Class
Statistical Summary
World A
Financial
7
11,902,802
445,816
47,141,922 Totals 4,319,357
-1.8%46
3,445,317
47,141,922
874,040
4,319,357
Financial
663,315
72,625
6,298,488 City
Hall West
70,492
26.4% 72
9,489
6,298,488
61,003
70,492

Y-o-Y
Direct
% Change
Vacancy
Rate

Sublease
Direct
Vacancy
Available
Rate
Space

Total
Sublease
Vacancy
Available
Rate
Space

Y-o-Y
Direct
% Pt.Vacancy
Change
Rate

Direct
Sublease
Wtd.
Vacancy
Avg.
RentalRate
Rate

Sublease
Total
Wtd.
Vacancy
Avg.
RentalRate
Rate

Y-o-Y
Total
% Pt.Avg.
Change
Wtd.
Rental
Rate

Y-o-Y
Direct
% Change
Wtd. Avg.
Rental
Rate

Lower Manhattan Leasing

0.2%
26.4%

Year-to-Date
Sublease
Leasing
Wtd. Avg.
Activity
Rental Rate

Y-o-Y
Total
% Change
Wtd. Avg.
Rental
Rate

DOWNTOWN
NEW
YORK
OFFICE
MARKET
- THIRD
QUARTER
2012
1.0%
9,489
1.1%
61,003
0.2%
0.2%
$42.00
1.0%
$41.75
1.1%
$41.89
0.2%
0.1%
$42.00
72,462
$41.75
13.5%
$41.89

3.0%
7.4%
Y-o-Y
% Change
6.7%
-51.3%

0.8%
351,232
Direct
Available
4.3%
44,180
Space
2.5%
2,782,300
Sublease
Direct
Vacancy
Available
2.3%
258,116
9,489
Rate
Space

12.1%
-2.1%
Y-o-Y
Direct
%
Change
Vacancy
5.0%
6.4%
26.4%
Rate

3.7%
94,584
Sublease
Available
10.9%
28,445
Space
14.5%
569,777
Total
Sublease

Vacancy
Available
7.3%
120,231

0.3%
3.0%
Direct
Vacancy
-11.5%
6.7%
Rate
-0.3%
12.1%
Y-o-Y
Direct
% Pt.0.4%
Change
Vacancy
5.0%
0.2%
Rate

$54.19
0.8%
Sublease
Vacancy
$35.82
4.3%
Rate
$45.74
2.5%
Direct
Sublease

$32.71
3.7%
Total
Vacancy
$31.49
10.9%
Rate
$31.01
14.5%
Sublease
Total

Wtd.
Vacancy
Avg.
$39.47
2.3%

Wtd.
Vacancy
Avg.
$38.75
7.3%

$51.66
0.3%
Y-o-Y
% Pt. Change
$35.28
-11.5%

$45.04
-0.3%
Y-o-Y
Total
%$39.41
Pt.Avg.
Change
Wtd.
0.4%
Rental 0.2%
Rate

0.3%
$45.19
-0.2%
-11.5%
$41.89
0.2%

-6.5%
$54.19
Direct
Wtd.
Avg.
0.6%
$35.82
Rental Rate
4.7%
$45.74
Y-o-Y
Direct
% Change
Wtd.
Avg.
5.5%
$39.47
$42.00
Rental
Rate

$54.19
4.6%
$45.99
$35.82
0.1%
$42.00

694,603
$32.71
Sublease
Wtd.
Avg.
31,808
$31.49
Rental Rate
1,131,045
$31.01
Year-to-Date
Sublease
Leasing
Wtd.
Avg.
150,685
$38.75

Totals
46
47,141,922
4,319,357
5,202,929 Insurance378,347
6.4% 9
258,116
5,202,929
120,231
378,347
Y-o-Y
Direct
Sublease
Total
City Hall Total
7
6,298,488
70,492
% Change
Available
Available
Available
Available
Number of
World Financial
7
11,902,802
445,816
DOWNTOWN
NEW
YORK
OFFICE
MARKET
Space
Space
Space
Space
Buildings
47,141,922
Totals 4,319,357
-1.8%
46
3,445,317
47,141,922
874,040
4,319,357

Inventory Submarket
Inventory
Financial
2
663,315
72,625
Class
B West
Statistical Summary

Financial
East
21
23,074,388
OFFICE
MARKET
DOWNTOWN
NEW-37.8%
YORK
OFFICE
MARKET
3,192,893
City
Hall 106,516
8
94,764
3,192,893
Insurance
5,202,929
3,618,654 Class
World
Financial
409,477
7.1% 49
266,091
3,618,654
B
Statistical Summary

3,352,077
11,752
106,516
378,347
143,386
409,477
Total
Available
Number
3,962,787 Financial 766,032
West
9.0%
9 of
761,175
3,962,787
4,857
766,032
Space
Buildings
Totals
46
47,141,922
4,319,357
Submarket
Inventory
11,271,101 Financial1,298,240
East
3.8% 26
1,017,690
11,271,101
280,550
1,298,240
Y-o-Y
Total
Direct
Sublease
Total
% Change
Available
Available
Available
Available
Number
5,712,767 Insurance
406,417
12.6%
10 of
387,514
5,712,767
18,903
406,417
City
Hall
8
3,192,893
106,516
DOWNTOWN
NEW YORK
MARKET Space
Space
Space
Space
BuildingsOFFICE

Inventory Submarket
Inventory
World Financial
4
3,618,654
409,477
Class
Statistical Summary
27,758,202
Totals B2,986,682
57 OFFICE
2,527,234
27,758,202
2,986,682
OFFICE
MARKET
DOWNTOWN
NEW 4.1%
YORK
MARKET 459,448
West
3,962,787
766,032
3,192,893 Financial
City Hall 106,516
-37.8% 98
94,764
3,192,893
11,752
106,516

DOWNTOWN

Class
A409,477
Statistical Summary
Financial
East
26
11,271,101
3,618,654
World Financial
4
266,091
3,618,654
OFFICE
MARKET
DOWNTOWN
NEW 7.1%
YORK
OFFICE
MARKET
Number
Insurance
10
5,712,767
3,962,787 Class
Financial
766,032
West
9.0%
9 of
761,175
3,962,787
C
Statistical
Summary
Buildings
Submarket
Inventory

-1.8%
5.0%
6.4%
Y-o-Y
Direct
26.4%
% Change
Vacancy
7.4%
Rate
7.3%
-1.8%
As
$45.19:
-51.3%

3,445,317
874,040
7.3%
1.9%
2.3%
258,116
7.3%
120,231
0.4%
5.0%
$39.47
2.3%
Y-o-Y
Sublease
Direct
Total
Sublease
Direct
Direct
Sublease
9,489
61,003
0.2%
1.0%
% Pt.Vacancy
Change
Vacancy
Available
Vacancy
Available
Wtd.
Vacancy
Avg.
351,232
94,584
3.0%
0.8%
Space tenants Rate
Space
Rental
Rate
Rate
1.9%
3,445,317
9.2%
874,040
-0.2%
7.3%
$45.99
1.9%
Rate
proofRate
that
exploring
lower
Manhattan
prefer
44,180
28,445
6.7%
4.3%

9.2%
-0.2%
$45.99
$38.75
7.3%
$39.41
0.4%
5.5%
$39.47
Y-o-Y
Y-o-Y
Sublease
Total
Total
Direct
1.1%
0.2%
$42.00
% Pt.Avg.
Change
% Change
Wtd.
Vacancy
Avg.
Wtd.
Wtd. Avg.
3.7%
0.3%
$54.19
Rental
Rate
Rate
Rental
Rate
Rental
Rate
$32.50
9.2%
$45.19
-0.2%
4.6%
$45.99

new,
more-efficient
office
space
over
10.9%
-11.5%
$35.82

-13.9%
111.0%
-37.1%
-71.7%
Y-o-Y

Wtd.
Vacancy
Avg.
$34.29
0.3%
0.4%
RentalRate
Rate
4.0%
$34.74
1.7%
0.1%
$37.25
0.4%

Wtd.
Vacancy
Avg.
$0.00
7.1%
3.3%
RentalRate
Rate
11.3%
$33.34
10.8%
19.3%
$0.00
3.3%

%$34.29
Pt.Avg.
Change
Wtd.
1.2%
Rental-2.0%
Rate

0.8%
$34.61
0.6%
1.6%
$37.25
-2.0%

% Change
Wtd.
Avg.
-4.4%
$34.29
$37.25
Rental
Rate

$38.64
-1.4%
$34.74
$32.81
3.1%
$37.25

Leasing
Wtd.
Avg.
128,112
$0.00
$0.00
Activity
Rental
Rate
$30.39
1,165,263
$33.34
$0.00
126,180

% Change
Wtd.
Avg.
-2.9%
$34.29
$37.25
Rental
Rate

$37.10
10.8%
$34.61
$32.81
111.0%
$37.25

3.8%
7.4%
7.1%
Y-o-Y

280,550
11.3%
143,386
Sublease
Available
18,903
19.3%
4,857
Space
11.5%
280,550
Total
Sublease
459,448
Vacancy
Available
7.1%
18,903
Rate
Space
11,752
Total
Sublease
Vacancy
Available
143,386
10.8%
459,448
Rate
Space
1.1%
61,003
4,857

9.0%
0.8%
7.4%
Direct
Vacancy
6.8%
1.6%
19.2%
Rate
Y-o-Y
0.4%
9.0%
Direct
% Pt.Vacancy
Change
9.1%
1.2%
6.8%
Y-o-Y
Rate
3.0%

Direct
% Pt.Vacancy
Change
7.4%
0.6%
9.1%
Rate
0.2%
0.2%
19.2%

2.5%
$38.64
4.0%
Sublease
Vacancy
0.3%
$32.81
0.1%
Rate
$35.08
2.5%
Direct
Sublease
1.7%
Wtd.
Vacancy
Avg.
$34.29
0.3%
Rental
Rate
Rate
0.4%
Direct
Sublease
Wtd.
Vacancy
Avg.
4.0%
$34.74
1.7%
Rental
Rate
Rate
$42.00
1.0%
0.1%

11.5%
$30.39
11.3%
Total
Vacancy
7.1%
$0.00
19.3%
Rate
$34.35
11.5%
Sublease
Total
10.8%
Wtd.
Vacancy
Avg.
$0.00
7.1%
Rental
Rate
Rate
3.3%
Sublease
Total
Wtd.
Vacancy
Avg.
11.3%
$33.34
10.8%
Rental
Rate
Rate
$41.75
1.1%
19.3%

0.4%
$37.10
0.8%
Y-o-Y
%$32.81
Pt.1.6%
Change
1.2%

$35.08
0.2%
$38.64
Direct
Wtd.
Avg.
$34.29
-3.1%
$32.81
Rental Rate
Y-o-Y
0.6%
$35.08
Direct
% Change
$34.74
Wtd.
Avg.
-4.4%
$34.29
Y-o-Y
Rental
Rate
$37.25

Direct
% Change
Wtd. Avg.
$38.64
-1.4%
$34.74
Rental
Rate

0.1%
$42.00
$32.81

$34.35
73,847
$30.39
Sublease
Wtd.
Avg.
170,762
$0.00
Rental Rate
666,362
$34.35
Year-to-Date
Sublease
$33.34
Leasing
Wtd.
Avg.
128,112
$0.00
Activity
Rental
Rate
$0.00
Year-to-Date
Sublease
Leasing
Wtd. Avg.
$30.39
1,165,263
$33.34
Activity
Rental
Rate
72,462
$41.75
$0.00

$34.97
-71.7%
$37.10
Total
Wtd.
Avg.
$34.29
-1.0%
$32.81
Rental Rate
Y-o-Y
56.2%
$34.97
Total
% Change
$34.61
Wtd.
Avg.
-2.9%
$34.29
Y-o-Y
Rental
Rate
$37.25

Total
% Change
Wtd. Avg.
$37.10
10.8%
$34.61
Rental
Rate

13.5%
$41.89
$32.81

Y-o-Y
Year-to-Date
%
Change
Leasing
-4.4%
128,112
(60,613)
-3.1%Third Quarter
170,762
(65,470)2012
Activity

Y-o-Y
56,242
0.6%
666,362
67,500
Year-to-Date
Year-to-Date
Year-to-Date
Change
-1.4%
1,165,263
Direct%
Absorption
Total
Leasing
Absorption
(59,115)
-4.4%
128,112
(16,515)
Y-o-Y
Rate
Activity
Rate
3.1%
126,180

Year-to-Date
Year-to-Date
Year-to-Date
Change
Direct%Absorption
Total
Leasing
Absorption
0.2%
73,847
29,800
-1.4%
1,165,263
(54,011)
Rate
Activity
Rate

22,060
0.1%
72,462
30,607
-3.1%
170,762

-6.5%
$54.19
$35.08
-5.4%
$35.84
0.6%
$35.82
$34.29
N/A
$0.00
Direct
4.7%
$45.74
Wtd.
Avg.
-4.8%
$34.51
$34.74
Rental
Rate
5.5%
$39.47
1.3%
$28.23
Y-o-Y
Direct
% Change
Wtd.
Avg.
-3.5%
$31.96
4.6%
$45.99
$35.84
Rental
Rate

$0.00
-7.1%
$31.74
$34.51
-5.4%
$35.84

694,603
$32.71
$34.35
371,174
$35.32
31,808
$31.49
0$0.00
$0.00
Sublease
1,131,045
$31.01
Wtd.
Avg.
156,246
$38.50
$33.34
Rental
Rate
150,685
$38.75
63,347
$0.00
Year-to-Date
Sublease
Leasing
Wtd.
Avg.
137,566
$0.00
2,080,603
$32.50
$35.32
Activity
Rental
Rate
$0.00
728,333
$36.59
$38.50
371,174
$35.32

-72.0%
$51.66
$34.97
25.4%
$35.83
-29.7%
$35.28
$34.29
N/A
$0.00
Total
-13.9%
$45.04
Wtd.
Avg.
90.8%
$34.66
$34.61
Rental
Rate
-37.1%
$39.41
160.5%
$28.23
Y-o-Y
Total
% Change
Wtd.
Avg.
16.4%
$31.96
-49.7%
$45.19
$35.83
Rental
Rate

$0.00
40.0%
$31.80
$34.66
25.4%
$35.83

324,782
4.7%
% Change
52,367
-4.8%
-1.4%

17,842
5.5%
33,017
1.3%
Y-o-Y
Year-to-Date
Change
Direct%
Absorption
52,943
-3.5%
326,100
4.6%
-5.4%
Rate

N/A
491,561
-7.1%
-4.8%
353,234
-5.4%

Y-o-Y
Total
$28.23
-3.4%
% Pt.-5.5%
Change
Wtd.
Avg.
$31.96
-4.2%
Rental
Rate
Y-o-Y

-7.6%
Total
% Pt.Avg.
Change
Wtd.
0.0%
$31.80
-5.5%
Rental
Rate

$37.25
-2.0%
-3.5%

$28.23
N/A
$0.00
Direct
Wtd.
Avg.
$31.96
-4.8%
$34.51
Rental Rate
Y-o-Y
Direct
1.3%
$28.23
% Change
Wtd.
Avg.
$31.74
-3.5%
$31.96
Rental
Rate
Y-o-Y

$35.84
Direct
% Change
Wtd.
Avg.
$0.00
-7.1%
$31.74
Rental
Rate

3.1%
$37.25
$34.51

0$0.00
Sublease
Wtd.
Avg.
$0.00
156,246
$38.50
Rental Rate
Year-to-Date
Sublease
63,347
$0.00
Leasing
Wtd.
Avg.
$36.59
137,566
$0.00
Activity
Rental
Rate
$35.32
Year-to-Date
Sublease
Leasing
Wtd.
Avg.
$0.00
728,333
$36.59
Activity
Rental
Rate
126,180
$0.00
$38.50

$28.23
N/A
$0.00
Total
Wtd.
Avg.
$31.96
90.8%
$34.66
Rental Rate
Y-o-Y
Total
160.5%
$28.23
% Change
Wtd.
Avg.
$31.80
16.4%
$31.96
Rental
Rate
Y-o-Y

$35.83
Total
% Change
Wtd.
Avg.
$0.00
40.0%
$31.80
Rental
Rate

111.0%
$37.25
$34.66

63,347
01.3%
N/A Third Quarter
00 2012
Y-o-Y
Year-to-Date
% Change
Leasing
-3.5%
137,566
52,367
-4.8%Third Quarter
156,246
56,472 2012
Activity

Y-o-Y
Year-to-Date
Year-to-Date
Year-to-Date
33,017
1.3%
63,347
35,017
Change
Direct%Absorption
Total
Leasing
Absorption
-7.1%
728,333
52,943
-3.5%
137,566
57,450
Rate
Activity
Rate
Y-o-Y

-5.4%
371,174
Year-to-Date
Year-to-Date
Year-to-Date
Change
Direct%Absorption
Total
Leasing
Absorption
N/A
0
491,561
-7.1%
728,333
497,958
Rate
Activity
Rate

45,239
3.1%
126,180
35,763
-4.8%
156,246

$37.10
0.8%
-3.4%
$36.76
-2.9%
$32.81
1.6%
-4.2%
$45.09
0.4%
Y-o-Y
%$34.97
Pt.0.4%
Change
$33.12
-1.0%
-5.5%
$34.29
1.2%

$41.32
-0.2%
Y-o-Y
Total
%$35.57
Pt.-0.3%
Change
Wtd.
Avg.
$34.61
0.6%
Rental-2.9%
Rate

0.4%
$39.83
-0.6%
-1.0%
$36.76
-2.9%

0.2%
$38.64
$28.23
-2.1%
$36.62
-3.1%
$32.81
$31.96
0.6%
$47.49
Direct
0.6%
$35.08
Wtd.
Avg.
-3.7%
$33.11
$31.74
-4.4%
$34.29
Rental
Rate
2.6%
$41.98
Y-o-Y
Direct
% Change
Wtd.
Avg.
0.5%
$35.49
-1.4%
$34.74
$36.62
Rental
Rate

$47.49
1.9%
$40.31
$33.11
-2.1%
$36.62

73,847
$30.39
$0.00
569,816
$39.41
170,762
$0.00
$0.00
768,450
$31.40
Sublease
666,362
$34.35
Wtd.
Avg.
358,816
$33.81
$36.59
128,112
$0.00
Rental
Rate
1,860,754
$32.91
Year-to-Date
Sublease
Leasing
Wtd.
Avg.
416,363
$38.75
1,165,263
$33.34
$39.41
Activity
Rental
Rate
$31.40
3,974,199
$33.00
$33.81
569,816
$39.41

-71.7%
$37.10
$28.23
35.8%
$36.76
-1.0%
$32.81
$31.96
-71.9%
$45.09
Total
56.2%
$34.97
Wtd.
Avg.
19.8%
$33.12
$31.80
-2.9%
$34.29
Rental
Rate
5.5%
$41.32
Y-o-Y
Total
% -15.0%
Change
Wtd.
Avg.
$35.57
10.8%
$34.61
$36.76
Rental
Rate

$45.09
-30.4%
$39.83
$33.12
35.8%
$36.76

48,047
0.2%
73,847
(75,289)
1.3%
63,347
420,533
-2.1%
569,816
415,389
(60,613)
-3.1%
170,762
(65,470)
-3.5%
137,566
2012
2,367
0.6% Third Quarter
768,450
(155,359)
Y-o-Y
Year-to-Date
56,242
0.6%
666,362
67,500
%
Change
Leasing
(1,150)
-3.7%
358,816
21,962
-7.1%
728,333
(59,115)
-4.4%
128,112
(16,515)
Activity

414,041
2.6%
1,860,754
61,581
Y-o-Y
Year-to-Date
Year-to-Date
Year-to-Date
Change
Direct%
Absorption
Total
Leasing
Absorption
11,670
0.5%
416,363
2,922
29,800
-1.4%
1,165,263
(54,011)
-2.1%
569,816
Rate
Activity
Rate

0.6%
768,450
847,461
1.9%
3,974,199
346,495
-3.7%
358,816
420,533
-2.1%
569,816
415,389

2.4%
13.7%
-0.2%
$41.98
$47.49
1.5%
$31.40
5.5%
$45.09
0.4%
0.6%
$47.49
Y-o-Y
Sublease
Total
Direct
%$33.12
Pt.-0.3%
Change
Vacancy
Vacancy
Wtd.
Avg.
1.0%
6.8%
$35.49
$33.11
0.7%
$33.81
15.4%
-1.0%
-3.7%
$33.11
Rate
Rate
Rental
Rate

Y-o-Y
Y-o-Y
Direct
Sublease
Sublease
Total
Total
Direct
-30.4%: Nearly
square
feet 2.6%
of
$41.98
2.4%
$32.91
13.7% 4 million
$41.32
-0.2%
$41.98
% Pt.-0.6%
Change
% Change
Wtd.
Vacancy
Avg.
Wtd.
Vacancy
Avg.
Wtd.
Avg.
Wtd.
Avg.
1.6%
9.3%
$40.31
$35.49
1.0%
$38.75
6.8%
$35.57
-0.3%
0.5%
$35.49
office
space
was
leased
in
the
past
year,
Rental
Rate
Rate
Rental
Rate
Rate
Rental
Rate
Rental
Rate

0.5%
2.3%
-2.9%
$36.62

$32.91
768,450
$31.40
Sublease
Wtd.
Avg.
$38.75
358,816
$33.81
Rental Rate
Year-to-Date
Sublease
1,860,754
$32.91
Leasing
Wtd.
Avg.
$33.00
416,363
$38.75
Activity
Rental
Rate
$39.41

$41.32
-71.9%
$45.09
Total
Wtd.
Avg.
$35.57
19.8%
$33.12
Rental
Rate
Y-o-Y
Total
5.5%
$41.32
% Change
Wtd.
Avg.
$39.83
-15.0%
$35.57
Rental
Rate

$36.76

$31.40
3,974,199
$33.00
371,174
$35.32
$33.81

$45.09
-30.4%
$39.83
25.4%
$35.83
$33.12

3.0%
7.4%
3.8%
3.0%
-71.8%
6.7%
-51.3%
12.6%
0.0%
N/A
Y-o-Y
12.1%
-2.1%
% Change
5.8%
-36.1%
4.1%

5.0%
6.4%
18.9%
-17.1%
Y-o-Y
Direct
%
Change
Vacancy
5.5%
-51.3%
7.3%
-1.8%
-71.8%
Rate

N/A
6.0%
-50.4%
-36.1%
3.0%
-71.8%

0.8%
351,232
1,017,690
0.1%
142,497
4.3%
44,180
387,514
0.0%
0
Direct
2.5%
2,782,300
Available
0.4%
78,741
2,527,234
Space
2.3%
258,116
0.0%
238,726
Sublease
Direct
Vacancy
Available
0.0%
165,432
1.9%
3,445,317
142,497
Rate
Space
0
0.1%
625,396
78,741
0.1%
142,497

3.7%
94,584
280,550
3.1%
4,560
10.9%
28,445
18,903
0.0%
0
Sublease
14.5%
569,777
Available
6.2%
5,955
459,448
Space
7.3%
120,231
18.9%
0
Total
Sublease
Vacancy
Available
5.5%0
9.2%
874,040
4,560
Rate
Space
0
6.1%
10,515
5,955
3.1%
4,560

0.3%
3.0%
9.0%
-7.6%
3.0%
-11.5%
6.7%
6.8%
0.0%
0.0%
Direct
-0.3%
12.1%
Vacancy
-3.5%
5.8%
9.1%
Rate
0.4%
5.0%
-3.4%
18.9%
Y-o-Y
Direct
% Pt.-4.2%
Change
Vacancy
5.5%
-0.2%
7.3%
3.0%
Rate
0.0%
-5.5%
6.0%
5.8%
-7.6%
3.0%

$54.19
0.8%
2.5%
$35.84
0.1%
$35.82
4.3%
0.3%
$0.00
0.0%
Sublease
$45.74
2.5%
Vacancy
$34.51
0.4%
1.7%
Rate
$39.47
2.3%
$28.23
0.0%
Direct
Sublease
Wtd.
Vacancy
Avg.
$31.96
0.0%
$45.99
1.9%
0.1%
RentalRate
Rate
0.0%
$31.74
0.1%
0.4%
$35.84
0.1%

$32.71
3.7%
11.5%
$35.32
3.1%
$31.49
10.9%
7.1%
$0.00
0.0%
Total
$31.01
14.5%
Vacancy
$38.50
6.2%
10.8%
Rate
$38.75
7.3%
$0.00
18.9%
Sublease
Total
Wtd.
Vacancy
Avg.
$0.00
5.5%
$32.50
9.2%
3.1%
RentalRate
Rate
0.0%
$36.59
6.1%
6.2%
$35.32
3.1%

-17.1%
0.0%
N/A
Y-o-Y
% -51.3%
Change
5.8%
-36.1%

238,726
0.0%
0
Direct
Available
165,432
0.4%
78,741
Space
Sublease
Direct
0.0%
238,726
Vacancy
Available
625,396
0.0%
165,432
Rate
Space
142,497
Sublease
Direct
Vacancy
Available
0
0.1%
625,396
Rate
Space
0.4%
94,764
78,741

0
0.0%
Sublease
Available
0
6.2%
5,955
Space
Total
Sublease
18.9%
0
Vacancy
Available
10,515
5.5%0
Rate
Space
4,560
Total
Sublease
Vacancy
Available
0
6.1%
10,515
Rate
Space
3.3%
11,752
5,955
11.3%
143,386
0
2.3%
77,315
19.3%
4,857
0
5.5%
237,970
Sublease
11.5%
280,550
Available
15.4%
39,257
10,515
7.1%
18,903
Space
13.7%
850,327
Total
Sublease

18.9%
0.0%
0.0%
Direct
Vacancy
5.5%
-3.5%
5.8%
Rate
Y-o-Y
Direct
-3.4%
18.9%
% Pt.Vacancy
Change
6.0%
-4.2%
5.5%
Rate
Y-o-Y

3.0%
Direct
% Pt.Vacancy
Change
0.0%
-5.5%
6.0%
Rate

-2.0%
3.0%
5.8%

0.0%
$0.00
Sublease
Vacancy
0.0%
$34.51
0.4%
Rate
Direct
Sublease
$28.23
0.0%
Wtd.
Vacancy
Avg.
0.1%
$31.96
0.0%
Rental
Rate
Rate
0.1%
Direct
Sublease
Wtd.
Vacancy
Avg.
0.0%
$31.74
0.1%
Rental
Rate
Rate
$37.25
0.4%
0.4%

18.9%
$0.00
0.0%
Total
Vacancy
5.5%
$38.50
6.2%
Rate
Sublease
Total
$0.00
18.9%
Wtd.
Vacancy
Avg.
6.1%
$0.00
5.5%
Rental
Rate
Rate
3.1%
Sublease
Total
Wtd.
Vacancy
Avg.
0.0%
$36.59
6.1%
Rental
Rate
Rate
$0.00
3.3%
6.2%

0.8%
7.4%
18.9%
-2.9%
1.7%
1.6%
19.2%
5.5%
0.4%
4.0%
Direct
0.4%
9.0%
Vacancy
-1.0%
14.8%
6.0%
1.2%
6.8%
Rate
-0.2%
11.3%
Y-o-Y
Direct
% Pt.-0.3%
Change
Vacancy
5.8%
0.6%
9.1%
1.7%
Rate

$38.64
4.0%
0.0%
$36.62
0.5%
$32.81
0.1%
0.0%
$47.49
1.5%
Sublease
$35.08
2.5%
Vacancy
$33.11
0.7%
0.1%
$34.29
0.3%
Rate
$41.98
2.4%
Direct
Sublease

$30.39
11.3%
18.9%
$39.41
2.3%
$0.00
19.3%
5.5%
$31.40
5.5%
Total
$34.35
11.5%
Vacancy
$33.81
15.4%
6.1%
$0.00
7.1%
Rate
$32.91
13.7%
Sublease
Total

Wtd.
Vacancy
Avg.
$35.49
1.0%
$34.74
1.7%
0.5%
RentalRate
Rate
1.5%
$40.31
1.6%
0.7%
$36.62
0.5%

Wtd.
Vacancy
Avg.
$38.75
6.8%
$33.34
10.8%
2.3%
RentalRate
Rate
5.5%
$33.00
9.3%
15.4%
$39.41
2.3%

Y-o-Y
Direct
18.9%
-17.1%
% -50.4%
Change
Vacancy
5.5%
-51.3%
Rate
Y-o-Y

-71.8%
Direct
% Change
Vacancy
N/A
6.0%
-50.4%
Rate

3.0%
-37.8%
-36.1%
7.4%
7.1%
-17.1%
1.7%
-56.7%
19.2%
9.0%
-51.3%
4.0%
7.3%
Y-o-Y
9.0%
3.8%
%
Change
14.8%
-6.2%
-50.4%
6.8%
12.6%

11.3%
-1.5%
Y-o-Y
Direct
%
Change
Vacancy
5.8%
-10.0%
9.1%
4.1%
-56.7%
Rate

7.3%
7.7%
-7.1%
-6.2%
1.7%
-56.7%

4.0%
266,091
238,726
0.5%
246,750
0.1%
761,175
165,432
1.5%
617,323
Direct
2.5%
1,017,690
Available
0.7%
884,096
625,396
0.3%
387,514
Space
2.4%
4,038,716
Sublease
Direct
Vacancy
Available
1.0%
811,062
1.7%
2,527,234
246,750
Rate
Space
617,323
1.6%
6,597,947
884,096
0.5%
246,750

35,611,455
4,889,043
7.3% 56
12
617,323
15,570,956
237,970
855,293
Total
Available
Number
43
13,897,097
950,196
5,986,809 Insurance
Financial 923,353
West
-6.2%
15 of
884,096
5,986,809
39,257
923,353
85,252,521:
In
total,
lower
Manhattan
boasts
Space
Buildings
Submarket
Inventory
Y-o-Y
Total
Direct
Sublease
Total
35,611,455 Financial4,889,043
East
-1.5% 56
4,038,716
35,611,455
850,327
4,889,043
85,252,521
feet
of of
officeAvailable
inventory,
orAvailable
% Change
Number
Available square
Available
Totals
177
85,252,521
7,941,950
13,897,097 Insurance950,196
-10.0%
43
811,062
13,897,097
139,134
950,196
Buildings
Space
Space
Space

Inventory Submarket
Inventory
City
Hall a
51stock of Space
14,186,204
324,065
about
third of the office
Midtown.
With

-1.5%
4.0%
7.3%
Y-o-Y
% -10.0%
Change
14.8%
-6.2%

Y-o-Y
Direct
11.3%
-1.5%
% Change
Vacancy
-7.1%
5.8%
-10.0%
Rate

-56.7%

4,038,716
1.5%
617,323
Direct
Available
811,062
0.7%
884,096
Space
Sublease
Direct
2.4%
4,038,716
Vacancy
Available
6,597,947
1.0%
811,062
Rate
Space
246,750

850,327
5.5%
237,970
Sublease
Available
139,134
15.4%
39,257
Space
Total
Sublease
13.7%
850,327
Vacancy
Available
1,344,003
6.8%
139,134
Rate
Space
77,315

World Financial
12
15,570,956
855,293
85,252,521 Totals
-7.1%177
6,597,947
85,252,521
1,344,003
7,941,950
that in7,941,950
mind, the markets
inventory
is down from
4,694,823 City
Hall 147,057
-71.8%15
36
142,497
4,694,823
4,560
147,057
Financial
West
5,986,809
923,353
2005,
back
before
a
surge
of
conversions
trans49,500
World Financial
0
N/A 56
1
049,500
0 0
Financial
East
35,611,455
4,889,043

7.3%
7.7%
-7.1%
3.0%
-71.8%

617,323
1.6%
6,597,947
0.1%
142,497

237,970
9.3%
1,344,003
3.1%
4,560

Summary

Vacancy
Available
6.8%
139,134
10.8%
459,448
77,315
Rate
Space
237,970
9.3%
1,344,003
39,257
2.3%
77,315

4.0%
-0.6%
7.7%
14.8%
-2.9%
1.7%

11.3%
0.4%
4.0%
Direct
Vacancy
5.8%
-1.0%
14.8%
Rate
Y-o-Y
Direct
-0.2%
11.3%
% Pt.Vacancy
Change
7.7%
-0.3%
5.8%
Rate
1.7%
4.0%
-0.6%
7.7%
-7.6%
3.0%

-6.2%
884,096
39,257
14.8%
9.3%:
Compared0.0%
with
Midtown
and
Midtown
0.0%
N/A
0
0.0%
0
0.0%
0.0%
-1.5%
4,038,716
850,327
11.3%
South,
formedWest
many poorly-36.1%
performing
office
buildings5,955
1,360,707 Insurance
Financial
84,696
4
78,741
1,360,707
84,696
5.8%
-36.1%where vacancy
0.4%
78,741 rates inched
6.2%
5,955 upward
-3.5%
5.8%
43
13,897,097
950,196
-10.0%
811,062
139,134
5.8%
within six months from the end ofNOTE:
the current
Only space
monththat
is included
can be occupied
in statistics.
within six months from the end of the current month is included in statistics.
ever
so slightly,0.0%
lower
into 238,726
upscale residential
But over 238,726
1,265,966 Financial
East
-17.1% 9 properties.
238,726
1,265,966
0
18.9%
-17.1%
238,726 Manhattan
18.9%0 alone suc-3.4%
18.9%
Totals
177
85,252,521
-7.1% whittled
6,597,947
1,344,003
7.7%
2,981,401 Insurance
165,432
-51.3%
24Research
165,432
2,981,401inven- 7,941,950
165,432
0
5.5%
-51.3%
0.0%
165,432
0
-4.2%
5.5%
cessfully
away at the5.5%
vacancies.
If
the next
two
orand
three
years,
the
current
ch Services
Source:
Cushman
Wakefield
Services
you look at both Midtown and Midtown South,
tory will surpass 2005, because the new World
10,352,397 Totals 635,911
-50.4%74
625,396
10,352,397
10,515
635,911
6.0%
-50.4%
0.1%
625,396
6.1%
10,515
-5.5%
6.0%
and Manhattan overall, vacancy is up from a
Trade Center buildings alone represent close to
NOTE: Only space that can be occupied within six months from the end of the current month is included in statistics.
year ago, said Mr. McCarthy. So, again, the
5 million square
feet,
said OFFICE
Mr. McCarthy.
And
OFFICE MARKET
DOWNTOWN
NEW
YORK
MARKET
Source:
Cushman
and
Wakefield
Research Services
Downtown market is performing better in
the ones
that
were
converted
have helped to
Overall
Statistical
Summary
within six months from the end ofNOTE:
the current
Only space
monththat
is included
can be occupied
in statistics.
within six months from the end of the current month is included in statistics.
terms of vacancy.
increase the residential inventory, so across the
ch Services
Source: Cushman and Wakefield Research Services
Y-o-Y has more
Y-o-Y
Y-o-Y
board,
Lower Manhattan
inventory.Sublease
Total
Direct
Total
Direct
Sublease
Direct
Total
Sublease
Direct
Available
Inventory SubmarketSpace

% Change
Number of
Buildings

Available
Space
Inventory

Available
Available
Space
Space

% Change
Vacancy
Rate

Vacancy
Available
Rate
Space

NOTE: Only space that can be occupied within six months from the end of the current month is included in statistics.

There
14,186,204 City 177:
Hall 324,065
5,986,809
13,897,097
85,252,521

22|OCTOBER 23, 2012|THE COMMERCIAL OBSERVER

within six months from the end ofNOTE:

the current
Only space
monththat
is included
can be occupied
in statistics.
within six months from the end of the current month is included in statistics.

ch Services

% Pt.Vacancy
Change
Rate

are 177-56.7%
office
across all five
submarkets1.7%
in-56.7%
lower Manhattan,
them, the-2.9%
51 buildings
246,750
14,186,204
77,315
324,065
0.5%
246,750 and among
2.3%
77,315
1.7%
at 76
years. In Midtown
average age5.5%
is closer to 100
237,970
855,293
4.0%
7.3% South, the
1.5%
617,323
237,970
0.4%
4.0%
years 923,353
old, while Midtown
at 70, said Mr.
McCarthy.
One
of the things
we talk about
Financial
West
-6.2% 15is comparatively
884,096
5,986,809 young
39,257
923,353
14.8%
-6.2%
0.7%
884,096
15.4%
39,257
-1.0%
14.8%
Financial
4,889,043
East when we talk
-1.5% 56
4,038,716
35,611,455
850,327
4,889,043
11.3%
-1.5%
2.4%
4,038,716
13.7%
850,327
-0.2%
11.3%
frequently
about new
development
is that the stock
of buildings
in Manhattan
is old, he said.
Insurance
950,196
-10.0%
43 A skyscrapers,
811,062
13,897,097 like the
139,134
950,196
5.8%
-10.0%
6.8%
139,134
-0.3%
5.8%
I mean,
what we call
Class
one occupied
by Citibank 1.0%
at811,062
601 Lexington
Avenuethat
building was built
so its 45 years
old, and thats
one of the1.6%
citys top-tier9.3%
buildings. -0.6%
Totals 7,941,950
-7.1%in
177the 1970s,
6,597,947
85,252,521
1,344,003
7,941,950
7.7%
-7.1%
6,597,947
1,344,003
7.7%

Source:
Cushman
and Wakefield
Services
average
age
of the
property
stock
clocks in
15,570,956 World
Financial
855,293
7.3% 12Research
617,323
15,570,956

35,611,455

Vacancy
Available
Rate
Space

Source: Cushman and Wakefield Research Services

Y-o-Y
$34.97
0.4%
Total
% Pt.0.6%
Change
Wtd.
Avg.
$34.29
1.2%
Y-o-Y
Rental
Rate
-2.0%

Total
% Pt.Avg.
Change
Wtd.
0.8%
$34.61
0.6%
Rental
Rate

$41.89
0.2%
1.6%
$51.66
0.3%
0.4%
$35.83
-7.6%
$35.28
-11.5%
1.2%
$0.00
0.0%
Y-o-Y

%$45.04
Pt.-0.3%
Change
$34.66
-3.5%
0.6%

$39.41
0.4%
$28.23
-3.4%
Y-o-Y
Total
%$31.96
Pt.-4.2%
Change
Wtd.
Avg.
$45.19
-0.2%
-7.6%
Rental
Rate

0.0%
$31.80
-5.5%
-3.5%
$35.83
-7.6%
-3.4%
$0.00
0.0%
Y-o-Y
% Pt.-4.2%
Change
$34.66
-3.5%

which,
under normal
circumstances,
would
1.5%
5.5%
0.4%
$47.49
$40.31
1.6%
$33.00
9.3%
$39.83
-0.6%
1.9%
$40.31
$35.84
0.1%admirable.
$35.32
3.1%
-7.6% similar data
-5.4%
$35.84
be
Compared$35.83
with
0.7%
15.4%
-1.0%
$33.11
$0.00
0.0%
0.0%
$0.00
0.0%
N/A
$0.00
2.4%
13.7%
-0.2%
$41.98
from a year$0.00
ago,
when 1.7
million square
$34.51
0.4%
$38.50
6.2%
$34.66
-3.5%
-4.8%
$34.51
1.0%
6.8%
$35.49
feet
in deals by
Cond Nast-0.3%
and New York
$28.23
0.0%
$0.00
18.9%
$28.23
-3.4%
1.3%
$28.23

City were recorded,

activity
appears lacklus9.3%
-0.6%
$40.31
$0.00
5.5%
$31.96
-4.2%
-3.5%
$31.96
ter, to be sure. But if you examine quarterly
$31.74
0.1%
$36.59
6.1%
$31.80
-5.5% leasing
-7.1%
$31.74
averages over
the past decade,
in
lower Manhattan was at its strongest last
year. Its down 30 percent from a year ago,
for sure, but a year ago was very strong,
said Mr. McCarthy. I think Y-o-Y
its more imporY-o-Y
Direct
Sublease
Sublease
Total
Total
Direct
% Pt.to
Change
% Change
tant
at
it compared
the long-term
Wtd.
Vacancy
Avg. to look
Wtd.
Vacancy
Avg.
Wtd.
Avg.
Wtd. Avg.
RentalRate
Rate
RentalRate
Rate
Rental
Rate
Rental
Rate
average. The 10-year average leasing for the
first
three quarters
of the$36.76
year
is 3.4 million
$36.62
0.5%
$39.41
2.3%
-2.9%
-2.1%
$36.62
square feet,
so the numbers
$47.49
1.5%
$31.40
5.5%
$45.09
0.4%are looking
0.6%
$47.49
despite the$33.12
percentage.
$33.11
0.7% positive,
$33.81
15.4%
-1.0%
-3.7%
$33.11
1.6%
$31.96
0.0%

Third Quarter
2012
0.6%
666,362
48,047
0.2%
73,847
(75,289)

(45,680)
-6.5%
0.6%
353,234
-5.4%
7,096
0.6%
-4.4%
0N/A Third
Y-o-Y

694,603
(80,070)
666,362
371,174
349,019
31,808
30,960

128,112
00 2012
Quarter
Year-to-Date
1,131,045
(40,936)
Leasing
156,246
56,472
1,165,263
Activity
150,685
(38,013)
63,347
35,017
Year-to-Date
Year-to-Date
Total
Leasing
Absorption
137,566
57,450
2,080,603
(97,452)
371,174
Activity
Rate
0
728,333
497,958
156,246
371,174
349,019

2012
2.6%
1,860,754
2,367
0.6% Third Quarter
768,450
(155,359)
Y-o-Y
Year-to-Date
%(1,150)
Change
Leasing
0.5%
416,363
-3.7%
358,816
21,962
Activity

Y-o-Y
Year-to-Date
Year-to-Date
Year-to-Date
414,041
2.6%
1,860,754
61,581
Change
Direct%Absorption
Total
Leasing
Absorption
1.9%
3,974,199
11,670
0.5%
416,363
2,922
Rate
Activity
Rate

-2.1%
569,816
0.6%
847,461
1.9%
353,234
-5.4%
-3.7%

768,450
3,974,199
346,495
371,174
349,019
358,816

-72.0%
Y-o-Y
% Change
-29.7%

-13.9%
Y-o-Y
% -37.1%
Change
13.5%

-72.0%
-49.7%
-29.7%
13.5%

-13.9%
-49.7%
-37.1%
Y-o-Y
13.5%
% Change
-72.0%
-49.7%

-29.7%

% Change
-1.0%

-49.7%
56.2%
Y-o-Y
% Change
-2.9%
111.0%

-71.7%
10.8%
-1.0%
111.0%

56.2%
-71.7%
Y-o-Y
% Change
-2.9%
-1.0%

Y-o-Y
56.2%
% Change
10.8%
-2.9%
Y-o-Y
111.0%

% Change
-71.7%
10.8%

13.5%
-1.0%
-72.0%
56.2%
25.4%
-29.7%
-2.9%
N/A
Y-o-Y
-13.9%
% Change
90.8%
10.8%

-37.1%
160.5%
Y-o-Y
% Change
16.4%
-49.7%
25.4%

N/A
40.0%
90.8%
25.4%

160.5%
N/A
Y-o-Y
% Change
16.4%
90.8%

Y-o-Y
160.5%
% Change
40.0%
16.4%
Y-o-Y

25.4%
% Change
N/A
40.0%

111.0%
90.8%
-71.7%
160.5%
35.8%
-1.0%
16.4%
-71.9%
Y-o-Y
56.2%
% Change
19.8%
40.0%
-2.9%

5.5%
Y-o-Y
% -15.0%
Change
10.8%
35.8%

-71.9%
-30.4%
19.8%
35.8%

5.5%
-71.9%
Y-o-Y
% -15.0%
Change
19.8%

Y-o-Y
5.5%
% -30.4%
Change
-15.0%

35.8%

-71.9%
-30.4%
25.4%
19.8%

0$0.00 346,495:
N/A
$0.00
02.6%
N/A total absorp00
The year-to-date
$32.91
$41.32
1,860,754
156,246
$38.50
$34.66
52,367
-4.8%
156,246
56,472
$38.75
$35.57
0.5%as the change
416,363
tion rate, 90.8%
otherwise
known
in
63,347
$0.00
160.5%
$28.23
33,017
1.3%
63,347
35,017

N/A
5.5%
90.8%
-15.0%
160.5%

$33.00
137,566
$0.00

-30.4%
16.4%

occupied space, has remained positive since

$39.83
1.9%
3,974,199
16.4%
$31.96
52,943
-3.5%
137,566
57,450
December at 346,495 square feet, despite
negative absorption
in Midtown.
The728,333
fact that
728,333
$36.59
40.0%
$31.80
491,561
-7.1%
497,958
its positive is a big story because, you know,
weve seen in the Midtown market some softThird Quarter 2012
ness, said Mr. McCarthy. Weve heard about
softness in the market, but were still seeing
Y-o-Y
Y-o-Y
Year-to-Date
Sublease
Total
Year-to-Date
Year-to-Date
Year-to-Date
space being
takenDirect
off %the
market,Total
which
is
% Change
Change
Leasing
Wtd. Avg.
Wtd. Avg.
Absorption
Leasing
Absorption
Activity
Rental Rate
Rental
Rate
Rate
Rate a good
thing. Activity
obviously

13.5%

$45.19
-37.1%
$39.41
Y-o-Y
Total
$41.89
% Change
Wtd. Avg.
$51.66
Rental
Rate
-49.7%
$45.19

$35.28

% Pt.1.2%
Change
Vacancy
6.8%
3.0%
Rate
7.4%
0.6%
9.1%
19.2%
-2.0%
3.0%

-13.9%
-72.0%
Y-o-Y
% -37.1%
Change
-29.7%

Vacancy
Available
7.1%
18,903
11,752
Rate
Space
143,386
10.8%
459,448
4,857
3.3%
11,752

% Change
12.6%
19.2%
9.0%

Y-o-Y
% Change

4.7%
1,131,045
(45,680)
-6.5%
694,603
(80,070)
Y-o-Y
Year-to-Date
% Change
Leasing
5.5%
150,685
7,096
0.6% Third Quarter
31,808
30,960 2012
Activity

324,782
4.7%
1,131,045
(40,936)
4.6%
2,080,603
17,842
5.5%
150,685
(38,013)
Y-o-Y
Year-to-Date
Year-to-Date
Year-to-Date
0.1%
72,462
Change
Direct%Absorption
Total
Leasing
Absorption
-6.5%
694,603
Rate
Activity
Rate
326,100
4.6%
2,080,603
(97,452)

0.6%
31,808

Vacancy
Available
0.3%
387,514
94,764
Rate
Space
266,091
1.7%
2,527,234
761,175
0.4%
94,764

94,584
445,816
1,298,240
4,560
147,057
28,445
72,625
406,417
0Total
0
23,074,388 Financial3,352,077
East
-2.1%
21 of
2,782,300
23,074,388
569,777
3,352,077
Number
Available
1,360,707 Financial West
84,696
-36.1%
4
78,741
1,360,707
5,955
84,696
Totals
57
27,758,202
2,986,682
Buildings
Space
Inventory
5,202,929 Submarket
Insurance378,347
6.4% 9
258,116
5,202,929
120,231
378,347
1,265,966 Financial 238,726
East
-17.1% 9
238,726
1,265,966
238,726
0Total
Y-o-Y
Total
Direct
Sublease
% -51.3%
Change
Number
Available
Available
Available
Available
2,981,401 Insurance
165,432
24 of
165,432
2,981,401
165,432
0
DOWNTOWN
NEW
YORK
OFFICE
MARKET
47,141,922
Totals
4,319,357
-1.8%
46
3,445,317
47,141,922
874,040
4,319,357
City
Hall
36
4,694,823
147,057
Buildings
Space
Space
Space

Inventory SubmarketSpace
Inventory
World C
Financial
1
49,500
0
Class
Statistical Summary
10,352,397 Totals 635,911
-50.4%74
625,396
10,352,397
10,515
635,911
OFFICE
MARKET
DOWNTOWN
NEW
YORK
OFFICE
MARKET
West
4
1,360,707
84,696
4,694,823 Financial
City Hall 147,057
-71.8%36
142,497
4,694,823
4,560
147,057

Statistical
Financial
East
15,570,956 Class
World C
Financial
855,293

72,462
30,607

%
Change
Vacancy
6.8%
12.6%
-37.8%
Rate

7.1%
9.1%
4.1%
9.0%
3.0%
-37.8%

Y-o-Y
9.0%
3.8%
Direct
% Change
4.1%
Vacancy
6.8%
12.6%
Y-o-Y
Rate
-37.8%

Direct
% Change
Vacancy
7.1%
9.1%
4.1%
Rate

0.2%
26.4%
9.0%

238,726
0Total
0
Available
165,432
5,955
84,696
Space
Y-o-Y
Total
Direct
Sublease
1,265,966 Financial 238,726
East
-17.1% 9
238,726
1,265,966
238,726
0Total
% Change
Available
Available
Available
Number
Totals Available
74 of
10,352,397
635,911
2,981,401 Insurance165,432
-51.3%24
165,432
2,981,401
165,432
0
Space
Space
Space
Buildings
Y-o-Y

Inventory Submarket
Inventory
City Hall Space
36
4,694,823
147,057
Total
Direct
Sublease
Total
% Change
Available
Available
Available
Number
World Financial
1 of
49,500
0
DOWNTOWN
NEW-50.4%
YORK
MARKET Available
10,352,397
Totals 635,911
74 OFFICE
625,396
10,352,397
10,515
635,911
Space
Space
Space
Space
Buildings

Inventory Submarket
Inventory
3,192,893 Financial
City Hall 106,516
-37.8% 48
94,764
3,192,893
11,752
106,516
1,360,707
84,696
Overall West
Statistical Summary
3,618,654 World
Financial
409,477
7.1% 49
266,091
3,618,654
143,386
409,477
Financial
East
1,265,966
238,726
OFFICE
MARKET
DOWNTOWN
NEW-56.7%
YORK
MARKET 77,315
14,186,204
City Hall 324,065
51 OFFICE
246,750
14,186,204
324,065
3,962,787 Insurance
Financial 766,032
West
9.0% 24
9
761,175
3,962,787
4,857
766,032
2,981,401
165,432
Statistical Summary
15,570,956 Overall
World Financial
855,293
7.3% 12
617,323
15,570,956
237,970
855,293
Total
11,271,101 Financial1,298,240
East
3.8% 26
1,017,690
11,271,101
280,550
1,298,240
Available
Number
5,986,809 Financial 923,353
West
-6.2%
15 of
884,096
5,986,809
39,257
923,353
Totals
74
10,352,397
635,911
5,712,767 Submarket
Insurance406,417
12.6%
10
387,514
5,712,767
18,903
406,417
Space
Buildings
Inventory
35,611,455 Financial4,889,043
East
-1.5% 56
4,038,716
35,611,455
850,327
4,889,043
Y-o-Y
Total
Direct
Sublease
Total
% Change
Available
Available
Available
Available
Number
13,897,097 DOWNTOWN
Insurance
950,196
43 of
811,062
13,897,097
139,134
950,196
27,758,202
Totals
4.1%
57
2,527,234
27,758,202
2,986,682
NEW-10.0%
YORK
MARKET 459,448
City Hall2,986,682
51 OFFICE
14,186,204
324,065
Space
Space
Space
Space
Buildings

Inventory Submarket
Inventory
Overall
Statistical Summary
World Financial
12
15,570,956
855,293
85,252,521 Totals 7,941,950
-7.1%177
6,597,947
85,252,521
1,344,003
7,941,950
OFFICE
MARKET
DOWNTOWN
NEW-56.7%
YORK
OFFICE
MARKET 77,315
West
15
5,986,809
923,353
14,186,204 Financial
City Hall 324,065
51
246,750
14,186,204
324,065

22,060
0.1%

4.7%
1,131,045
45,239
3.1%
126,180
35,763
5.5% Third Quarter
150,685
48,047
0.2%
73,847
(75,289)2012
Y-o-Y
Year-to-Date
% Change
Leasing
(60,613)
-3.1%
170,762
(65,470)
Activity

4.6%
2,080,603
56,242
0.6%
666,362
67,500
Y-o-Y
Year-to-Date
Year-to-Date
Year-to-Date
Change
Direct%
Absorption
Total
Leasing
Absorption
(59,115)
-4.4%
128,112
(16,515)
3.1%
126,180
Rate
Activity
Rate

0.2%
73,847
29,800
-1.4%
1,165,263
(54,011)
-3.1%
170,762
45,239
3.1%
126,180
35,763

1,017,690
4.0%
266,091
Direct
Available
387,514
0.1%
761,175
Space
2.5%
1,017,690
Sublease
Direct
2,527,234
Vacancy
Available
0.3%
387,514
Rate
Space
94,764
Sublease
Direct
Vacancy
Available
266,091
1.7%
2,527,234
Rate
Space
1.0%
9,489
761,175

Class
Statistical
Summary
Financial
East
9
1,265,966
World B
Financial
0
N/A
1
049,500
OFFICE49,500
MARKET
DOWNTOWN
NEW
YORK
OFFICE
MARKET
Number
Insurance
24
2,981,401
1,360,707 Overall
Financial West
84,696
-36.1%
4 of
78,741
1,360,707
Statistical
Summary
Buildings
Submarket
Inventory

Year-to-Date
Year-to-Date
Total
Leasing
Absorption
Activity
Rate

(45,680)
-6.5%Third Quarter
694,603
(80,070)2012
Y-o-Y
Year-to-Date
% Change
Leasing
7,096
0.6%
31,808
30,960
Activity

324,782
4.7%
1,131,045
(40,936)
Y-o-Y
Year-to-Date
Year-to-Date
Year-to-Date
Change
Direct%
Absorption
Total
Leasing
Absorption
17,842
5.5%
150,685
(38,013)
0.1%
72,462
Rate
Activity
Rate

-6.5%
694,603
326,100
4.6%
2,080,603
(97,452)
0.6%
31,808
22,060
0.1%
72,462
30,607

its aging
inventory,
one need569,777
only to look at
the total weighted
average
rental rates-0.3%
across Class
A
-2.1%
2,782,300
12.1%
2.5%
14.5%
$45.74
$31.01
$45.04
3.0%
-37.8%
0.4%
94,764
3.3%
11,752
-2.0%
3.0%
$37.25
0.4%
$0.00
3.3%
$37.25
-2.0%
3.1%
$37.25
126,180
$0.00
111.0%
$37.25
buildings,
experienced
a143,386
4.6 percent0.8%
increase
from
last
as rates for
Class B and0.2%
Class
6.4% which 4.0%
258,116
120,231
5.0%
2.3% year, even
7.3%
0.4%
$39.47
$38.75
$39.41
7.4%
7.1%
266,091
11.3%
7.4%
$38.64
4.0%
$30.39
11.3%
$37.10
0.8%
$38.64
73,847
$30.39
-71.7%
$37.10
Y-o-Y
Y-o-Y
Direct
Sublease
Direct
Sublease
Total
Direct
Sublease
Total
NEW
YORK
DOWNTOWN
OFFICE
MARKET
-YORK
THIRD
OFFICE
QUARTER
MARKET
2012
- THIRD
2012
%buildings
Change
% Pt.that
Change
C19.2%
dropped.
They19.3%
want
the NEW
new1.6%
product,
said
Mr.
McCarthy,
who
noted
much
of
it,Avg. QUARTER
Available
Available
Vacancy
Vacancy
Vacancy
Wtd.
Wtd.
Avg.
Wtd.
Avg.
9.0%
0.1%
761,175
4,857
19.2%
$32.81
0.1%
$0.00
19.3%
$32.81
1.6%
-3.1%
$32.81
170,762
$0.00
-1.0%
$32.81
Space
Space
Rate
Rate
Rate
Rental
Rate
Rental
Rate
Rental
Rate

-1.8%
3,445,317
874,040
7.3%
1.9%
9.2%
-0.2%
$45.99
$32.50
$45.19
including
1 World
Trade Center,
available
until
late next year.
9.0%
3.8%
2.5%
1,017,690
11.5%
280,550
0.4%
9.0%wont be
$35.08
2.5%
$34.35
11.5%
$34.97
0.4%
0.6%
$35.08
666,362
$34.35
56.2%
$34.97
Y-o-Y
Y-o-Y
Y-o-Y
Y-o-Y
Y-o-Y
Direct
Sublease
Direct
Total
Sublease
Direct
Direct
Sublease
Sublease
Total
Total
Direct
Year-to-Date
Sublease
Total

1,298,240
143,386
409,477
Total
Available
406,417
4,857
766,032
Space
Y-o-Y
3.8% 26
1,017,690
11,271,101
280,550
1,298,240
Direct
Sublease
Total
% Change
57 of
27,758,202
2,986,682
Number
Available
Available
Available
12.6%
10
387,514
5,712,767
18,903
406,417
Y-o-Y
Buildings
Space
Space
Space
8
3,192,893
106,516

Direct
Sublease
Total
Inventory
% Change
Number of
Available
Available
Available
4
3,618,654
409,477
NEW 4.1%
YORK
MARKET 459,448
57 OFFICE
2,527,234
27,758,202
2,986,682
Buildings
Space
Space
Space

Inventory
26.4% 97
9,489
6,298,488
61,003
70,492
3,962,787
766,032

Class C Statistical Summary

11,902,802 Financial
World Financial
445,816
7.4% 26
7
351,232
11,902,802
East
11,271,101
OFFICE
MARKET
DOWNTOWN
NEW-71.8%
YORK
MARKET
4,694,823
City Hall 147,057
36 OFFICE
142,497
4,694,823
663,315 Insurance
Financial West
72,625
-51.3%10
2
44,180
663,315
5,712,767
49,500 Class
World C
Financial
0
N/A 1
049,500
Statistical
Summary

$32.50
150,685
$38.75
Year-to-Date
Sublease
$41.75
Leasing
Wtd. Avg.
$32.71
Activity
Rental
Rate
2,080,603
$32.50
$31.49

Y-o-Y
Year-to-Date
Change
Direct%Absorption
Rate

-72.0%
$51.66
Total
Wtd.
Avg.
-29.7%
$35.28
Rental Rate
-13.9%
$45.04
Y-o-Y
Total
% -37.1%
Change
Wtd.
Avg.
$39.41
$41.89
Rental
Rate

$51.66
-49.7%
$45.19
$35.28
13.5%
$41.89

61,003will experience a leasing

1.0%
1.1%
$41.75
Rate
Space
RentalRate
Rateanomaly:
RentalRate
Rate
Activity
Rental
Rate
Over the course of the next three years, lower Manhattan
as new and more-efficient office space
hits the market,
7.4%
351,232
94,584
3.0%
0.8%
3.7%
$32.71
supply and rental rates are expected
to escalate
For
real estate
analysts,
who
have estimated that vacancy rates2,080,603
could
7.3%
-1.8%
1.9%
3,445,317 simultaneously.
9.2%
874,040
-0.2%
7.3%
$45.99
1.9%
$32.50
9.2%
$32.50 skyrocket to as
-51.3%
44,180
28,445
6.7%
4.3%
10.9%
$31.49
26.4%
1.0%
9,489
1.1%
61,003
0.2%
0.2%
1.0%
$41.75
1.1%
$41.75
high as 17.5 percent by 2015,0.2%
the
prospect
of more product
is exciting,
if a bit $42.00
unnerving.
As
for
right now, Ken McCarthy, a senior72,462
economist
at CushFinancial
East
21
23,074,388
3,352,077
-2.1%
2,782,300
569,777
12.1%
2.5%
14.5%
-0.3%
$45.74
$31.01
$45.04
11,902,802
World
Financial
445,816
7
351,232
11,902,802
445,816
3.0%
7.4%
0.8%
351,232
3.7%
94,584
0.3%
3.0%
$54.19
0.8%
$32.71
3.7%
$51.66
0.3%
-6.5%
$54.19
694,603
$32.71
-72.0%
$51.66
Y-o-Y
Y-o-Y
OFFICE
MARKET
DOWNTOWN
NEW 7.4%
YORK
OFFICE
MARKET 94,584
Total
Direct
Sublease
Direct
Sublease
Total
Direct
Sublease
Total
man
&
Wakefield,
reviewed
Manhattans
third-quarter
stats
with
The
Commercial
Observer
and
which
data
points
could
affect
the
% lower
Change
% discussed
Pt.0.4%
Change
Number
of
Available
Available
Available
Vacancy
Vacancy
Vacancy
Wtd.
Avg.
Wtd.
Avg.
Wtd.
Avg.
Insurance
9
5,202,929
378,347
6.4%
258,116
120,231
5.0%
2.3%
7.3%
$39.47
$38.75
$39.41
663,315 Class
Financial
West
72,625
-51.3% 2
44,180
663,315
28,445
72,625
6.7%
-51.3%
4.3%
44,180
10.9%
28,445
-11.5%
6.7%
$35.82
4.3%
$31.49
10.9%
$35.28
-11.5%
0.6%
$35.82
31,808
$31.49
-29.7%
$35.28
B
Statistical
Summary
Buildings
Space
Space
Space
Rate
Rate
Rate Properties
Rate
Rental Rate
Rental
Rate
that Silverstein
WorldRental
Submarket
Inventory
short-term
health
of
the
market
Properties
1
World
Trade
Center
and
Brookfield
Financial
Center
both
call
home.
23,074,388 Financial3,352,077
East
-2.1% 21
2,782,300
23,074,388
569,777
3,352,077
12.1%
-2.1%
2.5%
2,782,300
14.5%
569,777
-0.3%
12.1%
$45.74
2.5%
$31.01
14.5%
$45.04
-0.3%
4.7%
$45.74
1,131,045
$31.01
-13.9%
$45.04

11,271,101 Financial1,298,240
East
Total
Totals Available
5,712,767 Insurance
406,417
City Hall Space
Total
Inventory Submarket
Available
World Financial
DOWNTOWN
27,758,202
Totals 2,986,682
Space
Inventory Submarket
6,298,488 Financial
City Hall West
70,492

Third Quarter 2012

DOWNTOWN NEW YORK

DOWNTOWN
OFFICE MARKET
NEW-YORK
THIRDOFFICE
QUARTER
MARKET
2012 - THIRD QUARTER 2012

40.0%

Y-o-Y
% Change

569,816
$39.41

35.8%
$36.76

420,533
-2.1%

569,816
415,389

35.8%

768,450
$31.40

-71.9%
$45.09

2,367
0.6%

768,450
(155,359)

-71.9%
19.8%

358,816
$33.81

19.8%
$33.12

(1,150)
-3.7%

358,816
21,962

$41.98
2.4%

$32.91
13.7%

$41.32
-0.2%

2.6%
$41.98

1,860,754
$32.91

5.5%
$41.32

414,041
2.6%

1,860,754
61,581

5.5%

$35.49
1.0%

$38.75
6.8%

$35.57
-0.3%

0.5%
$35.49

416,363
$38.75

-15.0%
$35.57

11,670
0.5%

416,363
2,922

-15.0%

$40.31
1.6%

$33.00
9.3%

$39.83
-0.6%

1.9%
$40.31

3,974,199
$33.00

-30.4%
$39.83

847,461
1.9%

3,974,199
346,495

-30.4%