... a change in available office stock has pushed rent prices up throughout the corridor, even as the submarket is likely to become increasingly tenant friendly.
New York, NY (PRWEB) August 26, 2014
Highlighting the duality of landlord versus tenant driven markets, Savills Studley’s most recent research entitled “Shifts Along Sixth Avenue” examined a subset of midtown buildings located on and around Sixth Avenue, designated the “Sixth Avenue Corridor.” As the leading global commercial real estate services firm specializing in tenant representation, Savills Studley explains how a change in available office stock has pushed rent prices up throughout the corridor, even as the submarket is likely to become increasingly tenant friendly.
Key research highlights includes:
- Sublet space has declined dramatically. Sublet space as a percentage of total available space along Sixth Avenue has fallen by 45% from Q3 2011 through Q2 2014, and now comprises just 19% of the market, down from 36%.
- For now, Midtown reigns for large block seekers of sublet space—but not along Sixth Avenue. There are no sublet blocks of space greater than 100,000 sf in either the Downtown or Midtown South markets and no Sixth Avenue sublet large blocks of space remain either.
- Available Class A direct space in the Westside I Savills Studley submarket - in which the majority of Sixth Avenue Corridor space is located - is somewhat “stale.” Such space has been on the market for an average of 17 months, significantly longer than direct Class A space in any other Midtown submarket.
- Sixth Avenue will see an increase in availability rates in the absence of activity given upcoming lease expiries and tenant relocations. Downward pressure on rents is one possible outcome; an increase in tenant improvement allowances and/or free rents is another.
For the complete study please visit savills-studley.com/research/shifts-along-sixth-avenue.
About Savills Studley
Savills Studley is the leading commercial real estate services firm specializing in tenant representation. Founded in 1954, the firm pioneered the conflict-free business model of representing only tenants in their commercial real estate transactions. Today, supported by high quality market research and in-depth analysis, Savills Studley provides strategic real estate solutions to organizations across all industries. The firm’s comprehensive commercial real estate platform includes brokerage, project management, capital markets, consulting and corporate services. With 25 offices in the U.S. and a heritage of innovation, Savills Studley is well known for tenacious client advocacy and exceptional service.
The firm is part of London-headquartered Savills plc, the premier global real estate service provider with over 27,000 professionals and over 600 locations around the world. Savills plc is listed on the London Stock Exchange (SVS.L).
For more information, please visit http://www.savills-studley.com and follow us on Twitter @SavillsStudley and LinkedIn.