Commercial Real Estate
National Office Space Update
The U.S. National office vacancy rate, decreased to 11.9% from the previous quarter, with net absorption positive 27.16 million square feet in the fourth quarter. Average rental rates increased to $21.63; 234 office buildings were delivered in the quarter.
Tri-State Commercial Real Estate Update
New York Metro
Data reflects ongoing strength in the multi-tenant Manhattan office market. New York currently enjoys the second lowest vacancy rate and the third highest rent gain among the major U.S. commercial property markets. The vacancy rate is down 10 basis points from the last quarter and 50 basis points, year over year. During the quarter the average rent increased 0.7%, while the average effective rent rose a 0.6%, indicating that the year-over-year gains (3.5% and 4.0%, respectively) are attributable to gains made in the first half of 2012. All indications point to ongoing strength in the New York commercial building sector in 2013.
Northern New Jersey
The Northern New Jersey office market ended the fourth quarter 2012 with a vacancy rate of 15.4%. This number decreased from the previous quarter, with a net absorption of 770,029 square feet. This compares to a negative 460,288 square feet in third quarter 2012. Vacant sublease space decreased as well, ending the quarter at 2,595,972 square feet. Tenants moving into large blocks of space in 2012 include: The Bank of Tokyo-Mitsubishi UFJ, Ltd. moving into 100,274 square feet at Harborside Financial Center 3; Allergan moving into 96,000 square feet at Somerset Corporate Center - Building 200; and EisnerAmper moving into 81,714 square feet at Metrotop Plaza II. Rental rates ended the fourth quarter at $23.09, a slight decrease from the previous quarter.
Long Island
The Long Island office market ended fourth quarter 2012 with a vacancy rate of 8.0%. The vacancy rate was down over the previous quarter, with net absorption of 1,139,419 square feet, compared with 320,819 square feet in third quarter 2012. Vacant sublease space decreased in the quarter, ending the quarter at 642,287 square feet.
Among 2012’s notable moves were Canon, moving into a new 768,000 square foot facility recently completed at 88 S Service Rd.; New York City Human Resources Administration, moving into 400,000 square feet at 470 Vanderbilt Ave.; and the Federal Emergency Management Agency, moving into 239,295 square feet at Forest Hills Tower.
Westchester/Southern Connecticut
The Westchester/Southern Connecticut office market ended the fourth quarter 2012 with a vacancy rate of 13.4%. The vacancy rate was up over the previous quarter, with a net absorption of negative 554,363 square feet in the fourth quarter. This number compares to negative 409,561 square feet in third quarter 2012. Vacant sublease space increased to 1,640,534 square feet.
Notable tenant occupancies during the year include Acorda Therapeutics, Inc., moving into 71,084 square feet at 410 Saw Mill River Rd; Freepoint Commodities, moving into 59,000 square feet at 58 Commerce Rd; and Acorda Therapeutics, Inc., moving into 58,145 square feet at 420 Saw Mill River Rd.
Rental rates ended the fourth quarter at $27.55, a decrease over the previous quarter.
*All information contained herein reflects data through Q4 2012. Source: Reis.com and CoStar’s Fourth Quarter 2012 Market Report.
Also in This Issue
Lightpath Solutions: Managed WiFi
WiFi and wireless networking is expected to grow nearly fifty percent in the next five years.
Lightpath Managed WiFi Question and Answer
Nelson Hom, Product Line Manager, answers some of the most frequent questions regarding Lightpath Managed WiFi.
Questions include:
Does the Lightpath Managed WiFi network integrate with mobile devices?
How does Lightpath implementation assure security?
Is Lightpath Managed WiFi cloud-based?