01 Aug Manhattan Business Leasing Shows Sign of Market Confidence
Manhattan businesses signed leases for larger and new space during the first half of 2013, highlighting a boost in investor confidence.
Manhattan, real estate, business, leasing, market confidence, usif, us immigration fund
New York City’s largest tenants are showing confidence in the Manhattan market in a big way, according to recent reports from CoStar Group Inc. Seven out of Manhattan’s 10 largest commercial leases signed in the first half of 2013 involved companies taking new space or adding to already existing space.
During the same period in 2012, only four of the top 10 real estate deals in Manhattan fell into this qualification. Six were simply renewals.
Matthew Van Buren, president of CBRE Group Inc.’s New York tri-state region, explained, “There’s a real sign of health again, especially in the financial services, legal and media industries which are a very large part of Manhattan occupancies. I do see the number and size of the deals as a sign of health in the underlying businesses and also see that as a harbinger of a good market.”
Even with these acknowledgements of growth and health in the financial, legal and media markets, the largest contract signed was Macy’s renewal of its 647,000 square feet of space at 11 Penn Plaza, which is where the retailer’s merchandising group is housed.
Technology and media companies definitely had the strongest showing in the market though, taking up 18 spots on the list of the top 50 contracts. Yahoo Inc. signed the biggest for their industry, moving into a new 176,000 square-foot office on 43rd Street. Other large firms included Facebook Inc. and Condé Nast Publications Inc.
This rise in business confidence in the Manhattan market will spur an increase in interest in the residential side, as employees and future investors will move to where the jobs are.
As U.S. Immigration Fund continues to see progress on the construction of its Manhattan projects, Bryant Park, The Charles and 855 Avenue of the Americas, it remains confident in their success. Thanks to the surrounding confidence, these projects will undoubtedly propel business as well as real estate interest.