Академический Документы
Профессиональный Документы
Культура Документы
Our research identified 25 advertising agencies currently operating in Manhattan with the most prominent names located in the Midtown area (Leo Burnett, Impact BBDO, DDB Worldwide, Omnicom and others)
Integrity & Trust
It is evident that the primary market is Midtown East, specifically on Park/Madison Avenue due to accessibility to the area and proximity to major financial institutions. Average rents are at $70/SF/Yr with vacancy rates at 10% and a dominance of Class A office space.
Professional
LEASING ACTIVITY 3.9 MSF NYC UNEMPLOYMENT RATE (OCT12) 7.8 % NYC OFFICESER. JOBS 2,545,000 Y-O-Y US GDP CHANGE (Q212) 2.14% US CONS. CONF. INDEX (SEP 2) 70.3
Client
The secondary market is Midtown West, specifically around Times Square and Penn Station. This market presents more of an accessibility challenge. Average rents are at $55/SF/Yr with vacancy rates of 6 to 7% and a mix of Class A and B office space. Space efficiency has been a major subject in 2012 where most companies have reduced their office space requirements in an effort to reduce fixed cost. The average required space is below 10,000 Sqft allowing anchor tenants to have more bargaining power over price.
Excellence
Background Information
Mauro Gabrielle LLP (MG), a well-established advertising agency based in Chicago, engaged Valhalla Global Consultants (VGC) to conduct market research in New York City in order to identify potential office space for their future expansion. MG is unfamiliar with the market and has communicated to VGC that they require between 10,000 and 15,000 square feet in Midtown.
Recommended Locations
1270 Ave. of the Americas, NY 10020 Office Building Class A 32 Stories Year built 1932 18,851 SF 52$/SF/Yr Times Square Plaza 1500 Broadway, New York, NY 10036 Office Building Class A 52 Stories Year built 1974 12,200SF 47$/SF/Yr 600 Madison Avenue, NY 10020 Office Building Class A 26 Stories Year built 1964 13,115SF 17,852SF 75$/SF/Yr 79$/SF/Yr
Neighborhood Analysis
The Midtown area of Manhattan stretches from approximately 34th Street to 59th Street and from East to West across the entire island. The area is Manhattans most densely populated office property sector. It is home to some of the city's tallest and most famous buildings, such as the Empire State Building and Chrysler Building. It also contains world-famous commercial zones such as Rockefeller Center, Broadway, and Times Square. Midtown Manhattan is the busiest single commercial district in the United States and among the most intensely used pieces of real estate in the world. The majority of New York City's skyscrapers, including its tallest hotels and apartment towers, lie within Midtown. More than 700,000 commuters work in its offices, hotels, and retail establishments; the area also hosts many tourists, visiting residents, and students. Some areas, such as Times Square and Fifth Avenue, have large clusters of retail stores. Sixth Avenue in Midtown holds the headquarters of three of the four major television networks. It is also a growing center of finance, second in importance within the United States only to Downtown Manhattan's Financial District. Times Square is also the center of American theater. The economic base in NYC is financial services; however there has been a boom in technology companies and new startups. According the state media, $14.7Bn is spent on advertising with 52% in Television ads and rest split between social and online ads. Grand Central Station, Manhattan's largest transportation hub, lies directly in the heart of midtown east at 42nd st. between Lexington Ave and 3rd Ave. There are eight subway lines, and all of the metro north trains, directly connected to Grand Central. This is a major advantage for office tenants in the midtown east area because it dramatically cuts down on their commute time coming from Queens, Westchester and lower Manhattan. The west side of midtown hosts Pennsylvania Station, which is on 34th street between 7th and 8th avenues. Penn Station services six subway lines and all of the long island railroad, which is also a major asset for commercial tenants commuting to work.
Global Consultants LLC.
Hot Topics
Q3 2012 leasing activity was 28% above the previous quarters level and 13% above Midtowns five-year quarterly average. New leases have been signed during the last quarter suggesting new businesses and comers to the market and an expansion in business. Above-average leasing activity offset new availabilities, resulting in positive net absorption for the quarter. Midtowns average asking rent remained stable, inching up by 1% during the quarter. The overall availability rate and the sublease availability rate remained stable.
Asking Rents
The overall average asking rent remained stable during Q3 2012, inching upward by 1%, to $65.11 per sq. ft. The slight increase was largely due to the leasing of lower-priced space. The average asking rent for direct space increased by $0.28 to $67.54 per square foot. At $96.50 per square foot, The Plaza remained Midtowns most expensive segment, while Penn Station, at $45.65 per square foot, and Times Square South, at $44.68, were the least expensive.
Quick Stats
Contact Information
Valhalla Global Consultants LLC 280 Park Avenue, 44th Floor New York, 10010 NY, USA Chris Doscas & Ali Haidar Research Department +1(516) 382-5057 +1(347) 348-2346 cd@valhalla.com ah@valhalla.com