New York Market Overview

Lower Manhattan continued to have above-average leasing. Leasing activity in Lower Manhattan totaled 2.46 million square feet year-to-date in 2013. Relocations and first-time renters, rather than renewals, were the cause of the boost.

TAMI (technology, advertising, media, and information) tenants accounted for over a quarter of the top ten leasing deals in the second quarter of 2013, continuing the previous trend.

Andrew Penson’sof Argent Ventures claims the city’s proposal to re-zone Midtown East is selling air rights at far below market value. A recent appraisal shows the value to be over $400/SF. The city aims to charge developers about $250 per square foot for the right to build higher in the area that would be rezoned under the proposal.,Therefore the city is undercharging considerably. Revenues from the air rights will fund transit improvements for Grand Central Terminal and help maintain public spaces.