November Office Market Report

• For the Manhattan office market, activity since the strong summer months has slightly tapered, and a balance between supply and demand is causing minimal changes in availability. As a result, since the end of September, availability is up only 20 basis points, to 14.7 percent. If the availability rate were to remain this relatively stable over a period of several months, such stabilization so soon after the end of an economic downturn would be remarkable.
  
  
• In Midtown South, the main story is also stability, of both the availability rate and average asking rents. First to rental rates - for November, Midtown South's average asking rents declined only slightly to $45.14 PSF, the least of all Manhattan markets. The number of Landlords lowering prices on space already on the market continued, but not at the same rate as in past months.
  
  
• Regarding availability, Midtown South had another solid month of leasing, with its second consecutive month with more than 270,000 RSF of activity. While this may not seem like a large transaction total, the thing to remember about the Midtown South market is that it is not driven by overly large transactions, due to not having enough appropriately sized floorplates nor a large supply of Class A buildings. In fact, approximately 75 percent of Midtown South transactions year-to-date are under 25,000 RSF.
  
  
• To find out what leases are being signed in Midtown South and which new spaces are coming onto the market week to week, read MidtownSouthDaily.com every Monday and Friday, when we provide that information.