New Space Availability Monday

February is now upon us. But were we really ready for January to come to an end? With the first three weeks of January generally positive from a Midtown South real estate standpoint, let's see how the month came to a close.

Overall, we ended the month of January on a mixed note. Approximately 123,000 RSF* of new space hit the market last week, up almost 40,000 RSF from the week before. Weekly space additions in excess of 100,000 RSF are never good, but as we are in a recovering market, that number falls into the range of acceptability.

Looking back over the month, we saw a total of approximately 430,000 RSF of new space added to the market and more than 200,000 RSF of space unofficially leased. Assuming the amount of leased space rises slightly once final numbers are released, as is usually the case, Midtown South availability should rise only a few basis points for January, if not stay even with December. As I have been alluding to all month, the numbers are pointing in a positive direction.

Earlier I said that last week had mixed results, so I should pass along the really good news for the week. The percentage of sublease space to overall space added was once again below average, at 13% for the week. Can I get a "Hallelujah."

Total rentable square footage put on the market – 123,351 RSF
Percentage of direct space – 87.0% (107,326 RSF)
Percentage of sublease space – 13.0% (16,025 RSF)

* Not included in the 123,000 RSF is 72,000 RSF of space that was added to the inventory at 400 First Avenue, also known as The Alexandria Center for Science and Technology at East River Science Park, a newly constructed (near completion) center for commercial bioscience research and development. As this space is not intended for traditional office use, we have excluded availabilities in this facility from our weekly Monday report.

New Space Availabilities:

West 18th Street, off Fifth Avenue - Full floor of 16,000 RSF available in August. The building is recently renovated and features new elevators, restrooms and windows.

Broadway, north of Houston - Multiple spaces of between 2,500 and 5,000 RSF in a recently renovated building. $35.00 PRSF asking price. Availability in July 2010 and January 2011.

Fifth Avenue, just north of 14th Street - 10,000 RSF divided over two contiguous floors of 7,080 RSF (full floor) and 3,540 RSF (partial floor) with staircase. Sublease through June 2012. Spaces feature mix of offices and open area, hard wood floors, custom lighting, tenant controlled HVAC and high ceilings.

Seventh Avenue in the upper 20s - Multiple spaces of 2,000 - 4,000 RSF, all built either in move-in condition or with work available.

Varick Street - Multiple spaces of 1,300 - 5,500 RSF.