New Space Availability Monday

Photo courtesy of smashred, via Flickr

If you are a Midtown South landlord (and not a New Orleans Saint's fan, as pictured above), there is nothing much to smile about today. Approximately 130,000 RSF of new space hit the market last week, up around 5% from the week before. For those not keeping track, 3 of the past 4 weeks have seen weekly space additions of more than 120,000 RSF. With February leasing velocity expected to fall below January levels (even with a rumored 100,000+ SF Hudson Square transaction with Horizon Media reportedly on the horizon), next week is a big week. If we see another 120,000 SF+ of space additions, an availability increase for the month of February is likely in the cards.

On the other hand, if you are a tenant with a requirement for less than 15,000 RSF of space in Q2 or Q3 of this year, this week’s offerings may spark some interest. All of the Midtown South submarkets are covered, multiple options exist in many size ranges and there are some quality existing installations to speak of. That means reduced out-of-pocket expenses for you.

So call your broker and tell him or her that you are ready to see some new spaces. And if you do not have a broker, call me.

Total rentable square footage put on the market – 129,833 RSF
Percentage of direct space – 89.2% (115,822 RSF)
Percentage of sublease space – 10.8%* (14,011 RSF)
* Sublease space of less than 15% is great news that I should not overlook. The lack of largescale sublease offerings is the Midtown South story of 2010 thus far.

New Space Availabilities:

West 22nd Street, off Fifth Avenue – Two contiguous floors of 8,200 RSF each in a boutique building with a strong tenant roster. Each floor features a “spectacular” installation, one which is mostly open and one which is mostly offices. Possession is August 2010.

West 29th Street, off Sixth Avenue – Approximately 12,000 RSF in a full-service building, this full floor features 14-16 windowed offices, plus a conference room and cubicles.

Broadway, in Soho – Suite of slightly less than 2,900 RSF with an asking rent of $39.00 PRSF.

Broadway, in Noho – 6,000 RSF of high-end space in move-in condition, currently occupied by a Fortune 500 company. Great light and views. Furniture is included. The asking rent is $45.00 PRSF.

Fifth Avenue, in the 20s – Rare full-floor opportunity of only 3,300 RSF, the asking rent is $45.00 PRSF.

North end of Hudson Square – The past week’s only new sublease opportunity is also the largest new listing, with seating for more than 5o people. The 14,011 RSF space is available thru December 2013 and features a high-end installation that is in move-in condition.

Madison Avenue in the high 20s – Two contiguous floors of 7,500 RSF each, with an asking price of $37.00 PRSF. The spaces are described as being in move-in condition, with high ceilings and oversized windows. Possession in April.

Park Avenue South - Full floor of 12,200 RSF available in June on a direct lease basis. The space is built with 8-10 offices, conference rooms and open area, and is described as being "move-in ready." The asking rent is $36.00 PRSF.