Leasing Activity Slows in Third Quarter: Studley
October 4, 2010
By: Adam Pincus

The volume of square feet leased in Manhattan fell for the first time since the beginning of 2009, as tenants pulled back from historically high levels of deal making, yet the amount in the third quarter remained above average, a new report from commercial firm Studley shows. ....

..."The last quarter-over-quarter decline was in the first quarter of 2009," said Steven Coutts, senior vice president of national research at Studley. "It had been climbing ever since up to this quarter. But it still falls above the historical average of 7.3 million square feet."

The availability rate for all of Manhattan, which measures space that is available now or within 12 months, declined by .6 points to 12.1 percent in the third quarter from the prior three-month period. It was down by 1.1 points, from the third quarter of 2009 when it was 13.2 percent. At the same time, asking rents fell by 68 cents per square foot to $46.61 per foot in the third quarter, and dropped $4.37 per foot from $50.98 per foot one year ago, Studley reported. ...

..."The landlords have more space on their books than they did a year ago," Coutts said. "And the question is -- are they getting overly optimistic to the detriment of the ability to do deals in the coming quarters." 

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