1Q 2015 PRESS BRIEFING 1
ECONOMICOUTLOOKECONOMICOUTLOOK
CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
1Q 2015 PRESS BRIEFING
1Q 2015 PRESS BRIEFING 2
MA
NH
ATTA
N
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Leasing Activity by Submarket
Top Five Transactions
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Squa
re F
eet
Midtown Midtown South Downtown 5 Year Average
6th consecutive quarter of surpassing average leasing velocity“ ”
*Excludes deals under 5,000 SF.
1Q 2015 PRESS BRIEFING 3
MA
NH
ATTA
N
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
63%18%
10%
5% 4%
5,000 - 14,999 SF 15,000 - 24,999 SF 25,000 - 49,999 SF 50,000 - 99,999 SF 100,000 SF+
63% of total deals were less than 15,000 SF, while 37% of transactional activity was 100,000+ SF leases“ ”
21%
14%
14%13%
37%
By Number of Deals
By Share of Activity
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Leasing Activity by Submarket
Top Five Transactions
1Q 2015 PRESS BRIEFING 4
MA
NH
ATTA
N
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
38%
20%
15%
9%
8%
8%2%
FIRE TAMI Professional Services Other Public Sector Consumer Goods/Retail Health Services
FIRE (Financial Services, Insurance and Real Estate) industry was responsible for largest single share of leasing activity“ ”
40%
22%
17%
4%
11%4%3%
By Number of Tenants
By Square Footage
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Leasing Activity by Submarket
Top Five Transactions
1Q 2015 PRESS BRIEFING 5
MA
NH
ATTA
N
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Leas
ing
Act
ivity
(SF)
Midtown Midtown South Downtown
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Leasing Activity by Submarket
Top Five Transactions
1Q 2015 PRESS BRIEFING 6
MA
NH
ATTA
N
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
Top transaction in Manhattan was in the FIRE industry“ ”Company Address Submarket Size Transaction Type Industry
MetLife 200 Park Avenue Grand Central 539,299 Renewal / Expansion Insurance
Publicis Groupe 1675 Broadway Columbus Circle 520,918 Renewal / Expansion Advertising
Kirkland & Ellis LLP 601 Lexington Avenue Plaza District 403,000 Renewal /
Expansion Legal
City of New York 5 Manhattan West Penn Plaza/Garment 267,669 Renewal /
Expansion Government
WeWork 85 Broad Street Financial District 234,879 New Lease Real Estate
COMPANY ADDRESS SUBMARKET SIZE TRANSACTION TYPE INDUSTRY
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Leasing Activity by Submarket
Top Five Transactions
1Q 2015 PRESS BRIEFING 7
MA
NH
ATTA
N
HOME
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
Overall Availability
Availability by Submarket
Available Blocks of Space
Additions to Supply
New Construction/Renovation
FutureVacancies
Largest increase in a single quarter since 2009“ ”
0%
2%
4%
6%
8%
10%
12%
14%
Ove
rall
Avai
labi
lity
Rat
e
1Q 2015 PRESS BRIEFING 8
MA
NH
ATTA
N
HOME
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
World Trade Center had highest availability rate with availabilities at Brookfield Place and World Trade Center“ ”
0.9%4.1%
5.0%5.7%
6.0%6.6%6.8%
7.1%8.2%
10.0%11.7%11.9%12.0%
13.2%13.9%
14.6%19.1%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
UN PlazaGreenwich Village
TribecaInsurance District
Murray HillChelsea
SohoGramercy Park
Penn Plaza/GarmentPlaza District
Grand CentralColumbus Circle
Times SquareCity Hall
Hudson SquareFinancial District
World Trade Center
Availability Rate
Overall Availability
Availability by Submarket
Available Blocks of Space
Additions to Supply
New Construction/Renovation
FutureVacancies
1Q 2015 PRESS BRIEFING 9
MA
NH
ATTA
N
HOME
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
8.86
10.03
6.95
7.74
18.36
0 5 10 15 20
> 250,000
100,000-250,000
50,000-100,000
25,000-50,000
< 25,000
Total Availability (MSF)
Blo
ck S
ize
Ran
ge (S
F)
2,895 Blocks
226 Blocks
102Blocks
68 Blocks
19 Blocks
Overall Availability
Availability by Submarket
Available Blocks of Space
Additions to Supply
New Construction/Renovation
FutureVacancies
1Q 2015 PRESS BRIEFING 10
MA
NH
ATTA
N
HOME
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
Largest source of new construction will be in the Hudson Yards/Manhattan West“ ”
2
4
6
8
10
12
14
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
TBD
Squa
re F
eet (
Mill
ions
)
Midtown Midtown South Downtown
Overall Availability
Availability by Submarket
Available Blocks of Space
Additions to Supply
New Construction/Renovation
FutureVacancies
1Q 2015 PRESS BRIEFING 11
MA
NH
ATTA
N
HOME
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
Address Size (SF) Current Tenant Submarket Projected Possession
12 East 49th Street 238,000 Saks & Co. Plaza District 2016600 Fifth Avenue 124,000 Fiduciary Trust Plaza District 20161350 Avenue of the Americas 105,000 Amazon Plaza District 2016605 Third Avenue 400,000 Neuberger Berman Grand Central 20171460 Broadway 215,000 Skadden Penn Plaza / Garment Center 2017575 Fifth Avenue 300,000 L'Oreal Plaza District 201775 East 55th Street 250,000 Paul Hastings, LLP Plaza District 20171155 Avenue of the Americas 280,000 White & Case Times Square 20171251 Avenue of the Americas 280,000 MUFG Union Bank Times Square 2017825 Seventh Avenue 173,000 GroupM / MEC Columbus Circle 2018498 Seventh Avenue 240,000 Group M Penn Plaza / Garment Center 20181100 Avenue of the Americas 315,000 HBO Times Square 20181114 Avenue of the Americas 315,000 HBO Times Square 20181271 Avenue of the Americas 1,135,000 Time, Inc. Columbus Circle 201960 Columbus Circle 1,000,000 Time Warner Columbus Circle 20191095 Avenue of the Americas 355,000 MetLife Times Square TBD
315 Hudson Street 350,000 FEGS Health & Human Services Hudson Square TBD
154 West 14th Street 161,000 Multiple Tenants Chelsea TBD27 West 23rd Street 100,000 Touro College Chelsea TBD
6,336,000
Overall Availability
Availability by Submarket
Available Blocks of Space
Additions to Supply
New Construction/Renovation
FutureVacancies
1Q 2015 PRESS BRIEFING 12
MA
NH
ATTA
N
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
Net Absorption1st quarter of negative absorption since 2Q 2013“ ”
-1.4
2M
-3,000,000
-2,000,000
-1,000,000
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
Squ
are
Feet
1Q 2015 PRESS BRIEFING 13
MA
NH
ATTA
N
HOME
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
$76.15
$62.02
$55.00
$30
$40
$50
$60
$70
$80
$90
Aver
age
Ask
ing
Ren
t ($/
SF)
Midtown Midtown South Downtown Overall Average Asking Rent by
Market
Taking Rents
Asking Rent by Submarket
Asking Rent vs. Availability
Concessions
1Q 2015 PRESS BRIEFING 14
MA
NH
ATTA
N
HOME
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
$44.59$50.29
$51.74$54.86$54.89
$56.28$61.92$62.34
$65.10$65.40
$68.44$69.09
$70.83$73.83$74.46$75.11
$92.57
$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100
Insurance DistrictFinancial District
City HallMurray Hill
Penn Plaza/GarmentUN Plaza
TribecaWorld Trade Center
ChelseaColumbus Circle
Grand CentralSoho
Hudson SquareGramercy Park
Greenwich VillageTimes SquarePlaza District
Average Asking Rent ($/SF)
Plaza District retained highest average asking rent due to trophy assets“ ” Overall Average Asking Rent by
Market
Taking Rents
Asking Rent by Submarket
Asking Rent vs. Availability
Concessions
1Q 2015 PRESS BRIEFING 15
MA
NH
ATTA
N
HOME
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
10.7
%
$67.62
$30
$35
$40
$45
$50
$55
$60
$65
$70
$75
$80
0%
2%
4%
6%
8%
10%
12%
14%
Aver
age
Ask
ing
Ren
t (P
SF)
Avai
labi
lity
Rat
e (%
)
Overall Availability Rate Overall Average Asking Rent
8th consecutive quarter of average asking rent increase“ ” Overall Average Asking Rent by
Market
Taking Rents
Asking Rent by Submarket
Asking Rent vs. Availability
Concessions
1Q 2015 PRESS BRIEFING 16
MA
NH
ATTA
N
HOME
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
*Excludes deals under 5,000 SF.
46
88 91 100126
50
14
42 3039
33
230
7 2
8
16
3
0
20
40
60
80
100
120
140
160
180
200
2010 2011 2012 2013 2014 1Q15
Num
ber o
f Dea
ls
$75.00 - $99.99 $100.00 - $149.99 $150.00 +
3
0
$150.00 +
MT MTS DT
Manhattan’s Most Expensive Leases“ ”
17
6$100.00 to $149.99
39
11
$75.00 to$99.99
Overall Average Asking Rent by
Market
Taking Rents
Asking Rent by Submarket
Asking Rent vs. Availability
Concessions
1Q 2015 PRESS BRIEFING 17
MA
NH
ATTA
N
HOME
ECONOMICOUTLOOKECONOMICOUTLOOK
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
$58.51
$54.31
$46.35
$33.88
7.8
9.5
7.5
5.2
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0
$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00
1Q15
2014
2013
2012
Tenant Allowance Free Rent (Months)
Decrease in free rent period during 1Q 2015 as numerous renewals took place“ ” Overall Average Asking Rent by
Market
Taking Rents
Asking Rent by Submarket
Asking Rent vs. Availability
Concessions
1Q 2015 PRESS BRIEFING 18
MID
TOW
N
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITAL
MARKETSCAPITALMARKETS
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Top Five Transactions
Strong leasing activity caused by large transactions: MetLife, Publicis Groupe, Kirkland & Ellis, Fortress Investment Group and Reed Smith“ ”
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Squa
re F
eet
Midtown Leasing Activity 5 Year Average
Leasing Activity by Submarket
Grand Central Plaza District
*Excludes deals under 5,000 SF.
1Q 2015 PRESS BRIEFING 19
MID
TOW
N
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITAL
MARKETSCAPITALMARKETS
61% of transactions were less than 15,000 SF, while 45% of weighted share of activity was 100,000+ SF leases“ ”
61%16%
12%
6%5%
5,000 - 14,999 SF 15,000 - 24,999 SF 25,000 - 49,999 SF 50,000 - 99,999 SF 100,000 SF+
17%
10%
14%
14%
45%By Number of Deals
By Share of Activity
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Top Five Transactions
Leasing Activity by Submarket
Grand Central Plaza District
1Q 2015 PRESS BRIEFING 20
MID
TOW
N
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITAL
MARKETSCAPITALMARKETS
38%
20%
26%
16%
18%
9%
13%4%
FIRE TAMI TAMI Professional Services Other Public Sector Consumer Goods/Retail Health Services
40%
22%
17%
4%
11%4%3%
By Number of Tenants
By Square Footage
Most prominent single share of leasing activity was from FIRE industry“ ”
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Top Five Transactions
Leasing Activity by Submarket
Grand Central Plaza District
1Q 2015 PRESS BRIEFING 21
MID
TOW
N
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITAL
MARKETSCAPITALMARKETS
Grand Central had a 40.6% increase from 4Q 2014 activity due to MetLife renewal/expansion at 200 Park Avenue during 1Q 2015“ ”
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
Squa
re F
eet
Grand Central Leasing Activity 5 Year Average
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Top Five Transactions
Leasing Activity by Submarket
Grand Central Plaza District
1Q 2015 PRESS BRIEFING 22
MID
TOW
N
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITAL
MARKETSCAPITALMARKETS
Plaza District had a strong 1Q 2015 leasing activity from Kirkland & Ellis and Reed Smith transactions ”“
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Squa
re F
eet
Plaza District Leasing Activity 5 Year Average
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Top Five Transactions
Leasing Activity by Submarket
Grand Central Plaza District
1Q 2015 PRESS BRIEFING 23
MID
TOW
N
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITAL
MARKETSCAPITALMARKETS
No leasing activity in UN Plaza“ ”
1,263,148
1,065,918
1,592,991
633,027
1,026,399
1,421,837
2,140,648
322,797
- 500,000 1,000,000 1,500,000 2,000,000 2,500,000
Columbus Circle
Grand Central
Plaza District
Times Square
Square Feet
YTD 2015 YTD 2014
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Top Five Transactions
Leasing Activity by Submarket
Grand Central Plaza District
1Q 2015 PRESS BRIEFING 24
MID
TOW
N
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITAL
MARKETSCAPITALMARKETS
Top transaction in Manhattan was in the FIRE industry“ ”Company Address Submarket Size Transaction Type Industry
MetLife 200 Park Avenue Grand Central 539,299 Renewal / Expansion Insurance
Publicis Groupe 1675 Broadway Columbus Circle 520,918 Renewal / Expansion Advertising
Kirkland & Ellis LLP 601 Lexington Avenue Plaza District 403,000 Renewal /
Expansion Legal
Fortress Investment Group
1345 Avenue of the Americas Columbus Circle 198,619 Renewal Financial Services
Reed Smith LLP 599 LexingtonAvenue Plaza District 181,209 Renewal Legal
COMPANY ADDRESS SUBMARKET SIZE TRANSACTION TYPE INDUSTRY
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Top Five Transactions
Leasing Activity by Submarket
Grand Central Plaza District
1Q 2015 PRESS BRIEFING 25
MID
TOW
N
HOMELEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITAL
MARKETSCAPITALMARKETS
Overall Availability
Availability by Submarket
Available Blocks of Space
New availabilities at 75 Rockefeller Plaza, 12 East 49th Street, 1411 Broadway and 1601 Broadway“ ”
0%
2%
4%
6%
8%
10%
12%
14%
16%
Ove
rall
Avai
labi
lity
Rat
e
1Q 2015 PRESS BRIEFING 26
MID
TOW
N
HOMELEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITAL
MARKETSCAPITALMARKETS
Grand Central availability rate decreased 3.7pp (percentage points) during previous 12 months while Columbus Circle availability rate increased by 2.4pp“ ”
11.9
%
11.7
%
10.0
%
0.9%
12.0
%
11.5
% 12.5
%
10.1
%
0.8%
10.0
%
9.5%
15.4
%
11.1
%
0.9%
11.3
%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Columbus Circle Grand Central Plaza District U.N. Plaza Times Square
Avai
labi
lity
Rat
e (%
)
1Q15 4Q14 1Q14
Overall Availability
Availability by Submarket
Available Blocks of Space
1Q 2015 PRESS BRIEFING 27
MID
TOW
N
HOMELEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITAL
MARKETSCAPITALMARKETS
3.00
5.69
3.47
4.23
9.39
0 1 2 3 4 5 6 7 8 9 10
> 250,000
100,000-250,000
50,000-100,000
25,000-50,000
< 25,000
Total Availability (MSF)
Blo
ck S
ize
Ran
ge (S
F)
1133 Avenue of the Americas1633 Broadway
285 Madison Avenue4 Times Square
55 West 46th Street75 Rockefeller Plaza
7 Bryant Park
1,396 Blocks
123 Blocks
51 Blocks
36 Blocks
7 Blocks
BLOCKS >250,000 (SF)
Overall Availability
Availability by Submarket
Available Blocks of Space
1Q 2015 PRESS BRIEFING 28
MID
TOW
N
HOMELEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITAL
MARKETSCAPITALMARKETS
(425
,710
)
-2,000,000
-1,500,000
-1,000,000
-500,000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Squ
are
Feet
Negative absorption caused by availabilities at 75 Rockefeller Plaza, 12 East 49th Street, 1411 Broadway and 1601 Broadway“ ” Net Absorption
1Q 2015 PRESS BRIEFING 29
MID
TOW
N
HOMELEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITAL
MARKETSCAPITALMARKETS
Asking Rent vs. Availability
Asking Rent by Submarket
$65.
40
$68.
44
$92.
57
$56.
28
$75.
11
$65.
23
$67.
51
$88.
82
$56.
90
$74.
71
$69.
57
$64.
29
$85.
01
$64.
36
$75.
95
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Columbus Circle Grand Central Plaza District U.N. Plaza Times Square
Ask
ing
Ren
t ($/
SF)
1Q15 4Q14 1Q14
8.9% average asking rent increase during previous 12 months in Plaza District while U.N. Plaza decreased by 12.6%“ ”
1Q 2015 PRESS BRIEFING 30
MID
TOW
N
HOMELEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITAL
MARKETSCAPITALMARKETS
Asking Rent vs. Availability
Asking Rent by Submarket
30.4% increase in average asking rent since recession low in 2Q 2010“ ”
11.1
%
$76.15
$30
$35
$40
$45
$50
$55
$60
$65
$70
$75
$80
0%
2%
4%
6%
8%
10%
12%
14%
16%
Aver
age
Ask
ing
Ren
t (P
SF)
Avai
labi
lity
Rat
e (%
)
Overall Availability Rate Overall Average Asking Rent
1Q 2015 PRESS BRIEFING 31
MID
TOW
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Top Five Transactions
11.5% decrease in 1Q 2015 leasing activity compared to 4Q 2014“ ”
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Squa
re F
eet
Midtown South Leasing Activity 5 Year Average
Leasing Activity by Submarket
Penn Plaza/Garment District
*Excludes deals under 5,000 SF.
1Q 2015 PRESS BRIEFING 32
MID
TOW
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OU
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
66%
20%
8%4%
2%
5,000 - 14,999 SF 15,000 - 24,999 SF 25,000 - 49,999 SF 50,000 - 99,999 SF 100,000 SF+
29%
21%15%
14%
21%
By Number of Deals
By Share of Activity
66% of number of deals and 29% of leasing activity were leases less than 15,000 SF“ ”
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Top Five Transactions
Leasing Activity by Submarket
Penn Plaza/Garment District
1Q 2015 PRESS BRIEFING 33
MID
TOW
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
13%
26%
16%
18%
9%
13%
4%
FIRE TAMI Professional Services Other Public Sector Consumer Goods/Retail Health Services
17%
20%
13%9%
23%
9%
9%
By Number of Tenants
By Square Footage
TAMI (Technology, Advertising, Media and Information Services) industry had greatest number of leases signed while public sector industry had greatest weighted share of leasing activity“ ”
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Top Five Transactions
Leasing Activity by Submarket
Penn Plaza/Garment District
1Q 2015 PRESS BRIEFING 34
MID
TOW
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Penn Plaza/Garment District surpassed average leasing velocity for 3rd quarter in a row“ ”
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Squa
re F
eet
Penn Plaza/Garment District Leasing Activity 5 Year Average
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Top Five Transactions
Leasing Activity by Submarket
Penn Plaza/Garment District
1Q 2015 PRESS BRIEFING 35
MID
TOW
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
971,439
2,213,174
276,626
248,435
144,631
1,063,564
55,796
431,877
374,563
104,687
272,714
190,847
1,141,550
86,908
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000
Chelsea
Gramercy Park
Greenwich Village
Hudson Square
Murray Hill
Penn Plaza/Garment
Soho
Square Feet
YTD 2015 YTD 2014
Leases at 5 Manhattan West gave Penn Plaza/Garment District a 7.3% increase in YTD leasing activity compared to last year“ ”
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Top Five Transactions
Leasing Activity by Submarket
Penn Plaza/Garment District
1Q 2015 PRESS BRIEFING 36
MID
TOW
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OU
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Technology continued its demand for space in Midtown South“ ”Company Address Submarket Size Transaction Type Industry
City of New York 5 Manhattan West Penn Plaza/Garment 267,669 Renewal /
Expansion Government
WebMD 395 Hudson Street Hudson Square 147,670 New Technology
Markit 5 Manhattan West Penn Plaza/Garment 139,332 New Technology
NYU Langone Med. Center One Park Avenue Murray Hill 104,351 New Health Services
Facebook 770 Broadway Greenwich Village 79,998 Expansion Technology
COMPANY ADDRESS SUBMARKET SIZE TRANSACTION TYPE INDUSTRY
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Top Five Transactions
Leasing Activity by Submarket
Penn Plaza/Garment District
1Q 2015 PRESS BRIEFING 37
MID
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HOME
MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
0%
2%
4%
6%
8%
10%
12%
Ove
rall
Avai
labi
lity
Rat
e
Lowest availability rate since 3Q 2008“ ” Overall Availability
Availability by Submarket
Available Blocks of Space
1Q 2015 PRESS BRIEFING 38
MID
TOW
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OU
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HOME
MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Tightening availability in Greenwich Village as 51 Astor Place continued leasing and Facebook expanded at 770 Broadway “ ”6.
6% 7.1%
4.1%
13.9
%
6.0%
8.2%
6.8%
6.5%
8.5%
6.4%
14.9
%
6.1%
7.9%
5.9%
8.3%
8.2%
6.0%
12.9
%
7.6%
9.6%
5.9%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Chelsea Gramercy Park Greenwich Village Hudson Square Murray Hill Penn Plaza/Garment Soho
Avai
labi
lity
Rat
e (%
)
1Q15 4Q14 1Q14
Overall Availability
Availability by Submarket
Available Blocks of Space
1Q 2015 PRESS BRIEFING 39
MID
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
0.99
1.86
1.92
1.90
5.89
0 1 2 3 4 5 6 7 8 9 10
> 250,000
100,000-250,000
50,000-100,000
25,000-50,000
< 25,000
Total Availability (MSF)
Blo
ck S
ize
Ran
ge
1,053 Blocks
59 Blocks
28 Blocks
14 Blocks
2 Blocks
10 Hudson Yards550 Washington Street
BLOCKS >250,000 (SF)
Overall Availability
Availability by Submarket
Available Blocks of Space
1Q 2015 PRESS BRIEFING 40
MID
TOW
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HOME
MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
855,
444
-1,500,000
-1,000,000
-500,000
0
500,000
1,000,000
1,500,000
2,000,000
Squ
are
Feet
Positive absorption continued despite new construction added to the inventory“ ” Net Absorption
1Q 2015 PRESS BRIEFING 41
MID
TOW
N S
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HOME
MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Asking Rent vs. Availability
Asking Rent by Submarket
Gramercy Park had the largest $/SF increase during 1Q 2015 of all the Manhattan submarkets“ ”
$65.
10 $73.
83
$74.
46
$70.
83
$54.
86
$54.
89
$69.
09
$59.
76 $68.
43
$69.
68
$65.
73
$55.
16
$55.
33 $65.
02
$57.
23 $63.
55
$76.
29
$57.
98
$48.
12 $53.
44
$57.
96
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Chelsea Gramercy Park Greenwich Village Hudson Square Murray Hill Penn Plaza/Garment Soho
Ask
ing
Ren
t ($/
SF)
1Q15 4Q14 1Q14
1Q 2015 PRESS BRIEFING 42
MID
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Asking Rent vs. Availability
Asking Rent by Submarket
All-time high average asking rent in Midtown South“ ”
7.7%
$62.02
$0
$10
$20
$30
$40
$50
$60
$70
0%
2%
4%
6%
8%
10%
12%
Aver
age
Ask
ing
Ren
t (P
SF)
Avai
labi
lity
Rat
e (%
)
Overall Availability Rate Overall Average Asking Rent
1Q 2015 PRESS BRIEFING 43
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LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Leasing Activity by Submarket
Top Five Transactions
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Squa
re F
eet
Downtown Leasing Activity 5 Year Average
47.1% decrease in leasing activity compared to 4Q 2014“ ”
*Excludes deals under 5,000 SF.
1Q 2015 PRESS BRIEFING 44
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WN
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Similar to Midtown, majority number of transactions were less than 15,000 SF, while weighted share of activity was 100,000+ SF leases“ ”
65%
19%
11%3%
3%
5,000 - 14,999 SF 15,000 - 24,999 SF 25,000 - 49,999 SF 50,000 - 99,999 SF 100,000 SF+
26%
16%
18%
10%
29%
By Number of Deals
By Share of Activity
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Leasing Activity by Submarket
Top Five Transactions
1Q 2015 PRESS BRIEFING 45
DO
WN
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LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
52% of weighted leasing activity came from FIRE industry in 1Q 2015“ ”33%
11%30%
15%
11%
FIRE TAMI Professional Services Other Public Sector Consumer Goods/Retail Health Services
52%
11%
14%
18%
5%
By Number of Tenants
By Square Footage
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Leasing Activity by Submarket
Top Five Transactions
1Q 2015 PRESS BRIEFING 46
DO
WN
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
The only 100,000+ SF lease signed was WeWork at 85 Broad Street“ ”
7,454
917,731
274,143
8,000
1,161,350
16,685
545,704
49,308
27,054
167,917
0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000
City Hall
Financial District
Insurance District
Tribeca
World Trade Center
Square Feet
YTD 2015 YTD 2014
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Leasing Activity by Submarket
Top Five Transactions
1Q 2015 PRESS BRIEFING 47
DO
WN
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING HOME
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Technology continued its demand for space in Midtown South“ ”Company Address Submarket Size Transaction Type Industry
WeWork 85 Broad Street Financial District 234,879 New Lease Real Estate
Ambac Assurance Corp. 1 State Street Financial District 79,740 Renewal Insurance
Santander Bank 200 Liberty Street World Trade Center 42,128 New Financial Services
Namely 195 Broadway World Trade Center 41,982 New Technology
WeWork 11 John Street Insurance District 37,309 New Real Estate
COMPANY ADDRESS SUBMARKET SIZE TRANSACTION TYPE INDUSTRY
*Excludes deals under 5,000 SF.
Overall Leasing Activity
Leasing Activity by Size
Leasing Activity by Industry
Leasing Activity by Submarket
Top Five Transactions
1Q 2015 PRESS BRIEFING 48
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Largest increase in a single quarter since 2011“ ”
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Ove
rall
Avai
labi
lity
Rat
e
Overall Availability
Availability by Submarket
Available Blocks of Space
1Q 2015 PRESS BRIEFING 49
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
13.2
% 14.6
%
5.7%
5.0%
19.1
%
2.8%
11.6
%
6.5%
5.4%
16.7
%
1.8%
12.6
%
9.4%
6.4%
22.4
%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
City Hall Financial District Insurance Tribeca World Trade Center
Avai
labi
lity
Rat
e (%
)
1Q15 4Q14 1Q14
Addition of 375 Pearl Street to inventory resulted in City Hall availability rate increasing nearly five-fold during 1Q 2015“ ” Overall
Availability
Availability by Submarket
Available Blocks of Space
1Q 2015 PRESS BRIEFING 50
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
4.87
2.48
1.56
1.61
3.08
0 1 2 3 4 5 6 7 8 9 10
> 250,000
100,000-250,000
50,000-100,000
25,000-50,000
< 25,000
Total Availability (MSF)
Blo
ck S
ize
Ran
ge (S
F)
446 Blocks
44 Blocks
23 Blocks
18 Blocks
10 Blocks
1 Liberty Plaza300 Vesey Street180 Maiden Lane
195 Broadway20 Broad Street
28 Liberty Street (2 Blocks)375 Pearl Street
4 World Trade Center1 World Trade Center
BLOCKS >250,000 (SF)
Overall Availability
Availability by Submarket
Available Blocks of Space
1Q 2015 PRESS BRIEFING 51
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
(1,8
51,0
67)
-4,000,000
-3,000,000
-2,000,000
-1,000,000
0
1,000,000
2,000,000
Squ
are
Feet
First instance of negative absorption since 2Q 2013“ ” Net Absorption
1Q 2015 PRESS BRIEFING 52
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Asking Rent vs. Availability
Asking Rent by Submarket
Financial District average asking rent increased by 11.0% during 1Q 2015 as availabilities were added at 28 Liberty Street and 20 Broad Street“ ”
$51.
74
$50.
29
$44.
59
$61.
92
$62.
34
$53.
54
$45.
31
$42.
49
$60.
94
$61.
03
$41.
29
$43.
11
$39.
91
$61.
38
$59.
21
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
City Hall Financial District Insurance Tribeca World Trade Center
Ask
ing
Ren
t ($/
SF)
1Q15 4Q14 1Q14
1Q 2015 PRESS BRIEFING 53
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MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Asking Rent vs. Availability
Asking Rent by Submarket
Once again achieving new all-time high average asking rent“ ”
14.6
%
$55.00
$0
$10
$20
$30
$40
$50
$60
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Aver
age
Ask
ing
Ren
t (P
SF)
Avai
labi
lity
Rat
e (%
)
Overall Availability Rate Overall Average Asking Rent
1Q 2015 PRESS BRIEFING 54
MA
NH
ATTA
N
HOME
MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
$16.1 $30.3 $12.8 $2.2 $7.2 $13.8 $9.1 $19.7 $16.8 $5.2
7368
31
13
33
43
6265
77
15
0
10
20
30
40
50
60
70
80
$0
$5
$10
$15
$20
$25
$30
$35
2006 2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
# Tr
ansa
ctio
ns
Bill
ions
Sales Volume # Transactions
Sales Volume
Sales Price and Rents/SF
Sales Price/SF by Submarket
Class A and Class B Price/SF
Class A Price/SF by Submarket
Class B Price/SF by Submarket
Buyer and Seller Profiles
Core property transactions dominated sales activity, resulting in the strongest first quarter since 2007“ ”
1Q 2015 PRESS BRIEFING 55
MA
NH
ATTA
N
HOME
MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
$605 $777 $838 $338 $496 $565 $509 $769 $715 $970
$53.68
$68.62 $69.12
$49.11 $48.62$51.33
$56.13$60.41
$66.52 $67.62
$0
$10
$20
$30
$40
$50
$60
$70
$80
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
Ren
t/SF
Pric
e/SF
Price/SF Average Asking Rent
Manhattan all-time high price/SF“ ” Sales Volume
Sales Price and Rents/SF
Sales Price/SF by Submarket
Class A and Class B Price/SF
Class A Price/SF by Submarket
Class B Price/SF by Submarket
Buyer and Seller Profiles
1Q 2015 PRESS BRIEFING 56
MA
NH
ATTA
N
HOME
MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
$309
$580
$240
$107
$97
$250 $2
86 $375 $4
37
$416
$560 $6
07
$534
$303
$472 $496 $524 $5
76 $656
$1,0
77
$655
$975
$948
$416
$580
$697
$648
$955
$961
$1,2
80
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$1,300
2006 2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
Pric
e/SF
Downtown Midtown South Midtown
Class A and Class B all-time high price/SF in Midtown and Midtown South“ ” Sales Volume
Sales Price and Rents/SF
Sales Price/SF by Submarket
Class A and Class B Price/SF
Class A Price/SF by Submarket
Class B Price/SF by Submarket
Buyer and Seller Profiles
1Q 2015 PRESS BRIEFING 57
MA
NH
ATTA
N
HOME
MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Manhattan all-time high price/SF for Class A and Class B“ ”$6
80
$818
$944
$410
$530
$659
$522
$829 $8
66
$1,1
08
$405
$608
$538
$189
$383
$404 $4
94
$596
$543
$637
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
2006 2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
Pric
e/SF
Class A Class B
Sales Volume
Sales Price and Rents/SF
Sales Price/SF by Submarket
Class A and Class B Price/SF
Class A Price/SF by Submarket
Class B Price/SF by Submarket
Buyer and Seller Profiles
1Q 2015 PRESS BRIEFING 58
MA
NH
ATTA
N
HOME
MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Class A all-time high price/SF in Midtown and Midtown South“ ”$2
86
$580
$0 $0 $97
$301
$284 $3
61
$535
$394
$591
$614
$500
$0
$558 $6
55 $750
$1,1
36
$695
$1,3
70
$716
$1,0
11
$970
$410
$589
$759
$751
$1,0
22
$1,0
43
$1,4
47
$0$100$200$300$400$500$600$700$800$900
$1,000$1,100$1,200$1,300$1,400$1,500
2006 2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
Pric
e/SF
Downtown Midtown South Midtown
Sales Volume
Sales Price and Rents/SF
Sales Price/SF by Submarket
Class A and Class B Price/SF
Class A Price/SF by Submarket
Class B Price/SF by Submarket
Buyer and Seller Profiles
1Q 2015 PRESS BRIEFING 59
MA
NH
ATTA
N
HOME
MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Class B all-time high price/SF in Midtown South$3
24
$0
$240
$107
$0 $139
$533
$444
$350
$464
$536 $5
99
$541
$303 $3
44
$436
$508
$654
$645
$778
$303
$635
$627
$776
$509
$478
$456
$593 $6
15
$698
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
2006 2007 2008 2009 2010 2011 2012 2013 2014 1Q2015
Pric
e/SF
Downtown Midtown South Midtown“ ” Sales Volume
Sales Price and Rents/SF
Sales Price/SF by Submarket
Class A and Class B Price/SF
Class A Price/SF by Submarket
Class B Price/SF by Submarket
Buyer and Seller Profiles
1Q 2015 PRESS BRIEFING 60
MA
NH
ATTA
N
HOME
MIDTOWNMIDTOWN MIDTOWN SOUTHMIDTOWN SOUTH DOWNTOWNDOWNTOWN CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
ECONOMICOUTLOOKECONOMICOUTLOOK MANHATTANMANHATTAN
Foreign and institutional investors acquired core properties as stable assets, while private equity/funds were the most active sellers “ ”
62%20%
9%3%
7%
Foreign Institutional Private Equity/Funds Private Market REIT
12%
67%
12%
9%
Buyer Profiles Seller Profiles
Sales Volume
Sales Price and Rents/SF
Sales Price/SF by Submarket
Class A and Class B Price/SF
Class A Price/SF by Submarket
Class B Price/SF by Submarket
Buyer and Seller Profiles
1Q 2015 PRESS BRIEFING 61
ECONOMICOUTLOOKECONOMICOUTLOOK
CAPITALMARKETSCAPITALMARKETS
LEASING ACTIVITY AVAILABILITY NET ABSORPTION PRICING
1Q 2015 PRESS BRIEFING – Q&A