New York Market Overview

Of Midtown's 222 million square feet of office space, 30 million square feet is available. New commercial buildings, such as 11 Times Square and 510 Madison Avenue scheduled to open in a year, will add to the glut of vacant office space. Major financial firms continue to unload massive amounts of space onto the market. Citigroup is offering 300,000 square feet in Midtown for sublease from properties such as 485 Lexington Avenue.

There is a near standstill in leasing activity and building sales in New York. Income producing property sales are not taking heavy reductions while sales of vacant spaces are highly discounted. Company downsizings are leading to higher vacancies and lower lease prices. The rental rates and interest rates have driven down building values which further compound building-owner bankruptcies and troubles for banks - which will lead to more job losses.