Date post: | 25-Jan-2017 |
Category: |
Documents |
Upload: | henry-abramov |
View: | 87 times |
Download: | 2 times |
LEE NYCLong Island City Market Report3Q2015
LONG ISLAND CITY MARKET REPORT
2 LEE & ASSOCIATES NYC
OFFICELIC MARKET REPORT3Q2015
LONG ISLAND CITY MARKET REPORT • 3Q2015
Class B
$31.15Class C
$25.01Asking rents in office properties have risen 2.17% over last quarter. The market is attracting tenants who are expanding or relocating from Manhattan and Downtown Brooklyn. Tenants such as Macy's and the Joffrey Ballet Center.
Industrial Rents
$17.01Quarter to Quarter
+ 1.85%Quarter to Quarter
+ $0.31Class B
$19.32Class C
$16.41 INDUSTRIAL
3Q 2015 LONG ISLAND CITY MARKET SYNOPSIS
Office Rents
$33.37Quarter to Quarter
+ 2.17%Quarter to Quarter
+ $0.71Class A
$35.75Office in Flex & Ind.
$34.03
OFF
L I CCE
Availability Rate
9.1%Vacancy Rate
7.6%Office/Flex Inventory
12,159,117 SF
Proposed Square Ft.
6,131,8403Q Delivered Units
727The multifamily sector holds the most interest among landlords, investors and increaslingly tenants. Despite rising rates, the market's proximity to Midtown Manhattan and ease of access, has stimulated the area's population growth.
The Long Island City market is hereby defined by the zip code's, 11101 and 11109. The market boundaries are subjective to different sectors of commercial and residential real estate. To provide an overall and proper evaluation of the submarket, we have applied our metrics of market activity throughout these zip code's. Some exceptions were applied to the office metrics. For example, although The Offices at Studio Square (35-37 36th St.) are not within the defined boundaries, and its location is in Astoria, we felt best to include it in our Long Island City market report.
Retail rates in Long Island City continue to fluctuate as the market is still finding its equilibrium. Although rents on top corridors continue to ask in the low $100s, the asking average rent of ground floor space is close to $45 per-square-foot. The market has approximately half a million square feet of available at ground space.
Market Units
12,547Studio Rents
$2,410One Bed Rents
$2,920Two Bed Rents
$3,855Three Bed Rents
$5,067MULTI
FAMILY
Units in Construction
8,683Square Ft. In Construction
7,751,758 SFProposed Units
6,523
RETAIL
Ground Fl. on the Market
496,630 SF
Top CorridorsJackson Avenue
Queens PlazaVernon Boulevard
> 5000 SF | RentsAverage: $47.34
Weighted Avg: $57.82
2001-3000 SF | RentsAverage: $37.32
Weighted Avg: $37.42
3001-5000 SF | RentsAverage: $37.85
Weighted Avg: $37.42
Vacancy Rate
4.2%Industrial/Flex Inventory
25,835,251 SFAverage Space
8,156 SFNet Absorption
(83,468)The industrial market remains strong, despite a negative net absorption in the third quarter. Overall asking rents among the submarket's industrial and flex properties (over 900 buildings) increased close to 2% since last quarter.
Retail Avg. Rents
$44.89Weighted Avg. Rents
$51.89Avg. Ground Space
5,537 SF< 1000 SF | Rents
Average: $57.12Weighted Avg: $54.59
1001-2000 SF | RentsAverage: $50.75
Weighted Avg: $50.47
Industrial Rents
$17.01Quarter to Quarter
+ 1.85%Quarter to Quarter
+ $0.31Class B
$19.32Class C
$16.41 INDUSTRIALAvailability Rate
6.7%
Class B
$31.15Class C
$25.01Asking rents in office properties have risen 2.17% over last quarter. The market is attracting tenants who are expanding or relocating from Manhattan and Downtown Brooklyn. Tenants such as Macy's and the Joffrey Ballet Center.
Industrial Rents
$17.01Quarter to Quarter
+ 1.85%Quarter to Quarter
+ $0.31Class B
$19.32Class C
$16.41 INDUSTRIAL
3Q 2015 LONG ISLAND CITY MARKET SYNOPSIS
Office Rents
$33.37Quarter to Quarter
+ 2.17%Quarter to Quarter
+ $0.71Class A
$35.75Office in Flex & Ind.
$34.03
OFF
L I CCE
Availability Rate
9.1%Vacancy Rate
7.6%Office/Flex Inventory
12,159,117 SF
Proposed Square Ft.
6,131,8403Q Delivered Units
727The multifamily sector holds the most interest among landlords, investors and increaslingly tenants. Despite rising rates, the market's proximity to Midtown Manhattan and ease of access, has stimulated the area's population growth.
The Long Island City market is hereby defined by the zip code's, 11101 and 11109. The market boundaries are subjective to different sectors of commercial and residential real estate. To provide an overall and proper evaluation of the submarket, we have applied our metrics of market activity throughout these zip code's. Some exceptions were applied to the office metrics. For example, although The Offices at Studio Square (35-37 36th St.) are not within the defined boundaries, and its location is in Astoria, we felt best to include it in our Long Island City market report.
Retail rates in Long Island City continue to fluctuate as the market is still finding its equilibrium. Although rents on top corridors continue to ask in the low $100s, the asking average rent of ground floor space is close to $45 per-square-foot. The market has approximately half a million square feet of available at ground space.
Market Units
12,547Studio Rents
$2,410One Bed Rents
$2,920Two Bed Rents
$3,855Three Bed Rents
$5,067MULTI
FAMILY
Units in Construction
8,683Square Ft. In Construction
7,751,758 SFProposed Units
6,523
RETAIL
Ground Fl. on the Market
496,630 SF
Top CorridorsJackson Avenue
Queens PlazaVernon Boulevard
> 5000 SF | RentsAverage: $47.34
Weighted Avg: $57.82
2001-3000 SF | RentsAverage: $37.32
Weighted Avg: $37.42
3001-5000 SF | RentsAverage: $37.85
Weighted Avg: $37.42
Vacancy Rate
4.2%Industrial/Flex Inventory
25,835,251 SFAverage Space
8,156 SFNet Absorption
(83,468)The industrial market remains strong, despite a negative net absorption in the third quarter. Overall asking rents among the submarket's industrial and flex properties (over 900 buildings) increased close to 2% since last quarter.
Retail Avg. Rents
$44.89Weighted Avg. Rents
$51.89Avg. Ground Space
5,537 SF< 1000 SF | Rents
Average: $57.12Weighted Avg: $54.59
1001-2000 SF | RentsAverage: $50.75
Weighted Avg: $50.47
Industrial Rents
$17.01Quarter to Quarter
+ 1.85%Quarter to Quarter
+ $0.31Class B
$19.32Class C
$16.41 INDUSTRIALAvailability Rate
6.7%
Class B
$31.15Class C
$25.01Asking rents in office properties have risen 2.17% over last quarter. The market is attracting tenants who are expanding or relocating from Manhattan and Downtown Brooklyn. Tenants such as Macy's and the Joffrey Ballet Center.
Industrial Rents
$17.01Quarter to Quarter
+ 1.85%Quarter to Quarter
+ $0.31Class B
$19.32Class C
$16.41 INDUSTRIAL
3Q 2015 LONG ISLAND CITY MARKET SYNOPSIS
Office Rents
$33.37Quarter to Quarter
+ 2.17%Quarter to Quarter
+ $0.71Class A
$35.75Office in Flex & Ind.
$34.03
OFF
L I CCE
Availability Rate
9.1%Vacancy Rate
7.6%Office/Flex Inventory
12,159,117 SF
Proposed Square Ft.
6,131,8403Q Delivered Units
727The multifamily sector holds the most interest among landlords, investors and increaslingly tenants. Despite rising rates, the market's proximity to Midtown Manhattan and ease of access, has stimulated the area's population growth.
The Long Island City market is hereby defined by the zip code's, 11101 and 11109. The market boundaries are subjective to different sectors of commercial and residential real estate. To provide an overall and proper evaluation of the submarket, we have applied our metrics of market activity throughout these zip code's. Some exceptions were applied to the office metrics. For example, although The Offices at Studio Square (35-37 36th St.) are not within the defined boundaries, and its location is in Astoria, we felt best to include it in our Long Island City market report.
Retail rates in Long Island City continue to fluctuate as the market is still finding its equilibrium. Although rents on top corridors continue to ask in the low $100s, the asking average rent of ground floor space is close to $45 per-square-foot. The market has approximately half a million square feet of available at ground space.
Market Units
12,547Studio Rents
$2,410One Bed Rents
$2,920Two Bed Rents
$3,855Three Bed Rents
$5,067MULTI
FAMILY
Units in Construction
8,683Square Ft. In Construction
7,751,758 SFProposed Units
6,523
RETAIL
Ground Fl. on the Market
496,630 SF
Top CorridorsJackson Avenue
Queens PlazaVernon Boulevard
> 5000 SF | RentsAverage: $47.34
Weighted Avg: $57.82
2001-3000 SF | RentsAverage: $37.32
Weighted Avg: $37.42
3001-5000 SF | RentsAverage: $37.85
Weighted Avg: $37.42
Vacancy Rate
4.2%Industrial/Flex Inventory
25,835,251 SFAverage Space
8,156 SFNet Absorption
(83,468)The industrial market remains strong, despite a negative net absorption in the third quarter. Overall asking rents among the submarket's industrial and flex properties (over 900 buildings) increased close to 2% since last quarter.
Retail Avg. Rents
$44.89Weighted Avg. Rents
$51.89Avg. Ground Space
5,537 SF< 1000 SF | Rents
Average: $57.12Weighted Avg: $54.59
1001-2000 SF | RentsAverage: $50.75
Weighted Avg: $50.47
Industrial Rents
$17.01Quarter to Quarter
+ 1.85%Quarter to Quarter
+ $0.31Class B
$19.32Class C
$16.41 INDUSTRIALAvailability Rate
6.7%
Class B
$31.15Class C
$25.01Asking rents in office properties have risen 2.17% over last quarter. The market is attracting tenants who are expanding or relocating from Manhattan and Downtown Brooklyn. Tenants such as Macy's and the Joffrey Ballet Center.
Industrial Rents
$17.01Quarter to Quarter
+ 1.85%Quarter to Quarter
+ $0.31Class B
$19.32Class C
$16.41 INDUSTRIAL
3Q 2015 LONG ISLAND CITY MARKET SYNOPSIS
Office Rents
$33.37Quarter to Quarter
+ 2.17%Quarter to Quarter
+ $0.71Class A
$35.75Office in Flex & Ind.
$34.03
OFF
L I CCE
Availability Rate
9.1%Vacancy Rate
7.6%Office/Flex Inventory
12,159,117 SF
Proposed Square Ft.
6,131,8403Q Delivered Units
727The multifamily sector holds the most interest among landlords, investors and increaslingly tenants. Despite rising rates, the market's proximity to Midtown Manhattan and ease of access, has stimulated the area's population growth.
The Long Island City market is hereby defined by the zip code's, 11101 and 11109. The market boundaries are subjective to different sectors of commercial and residential real estate. To provide an overall and proper evaluation of the submarket, we have applied our metrics of market activity throughout these zip code's. Some exceptions were applied to the office metrics. For example, although The Offices at Studio Square (35-37 36th St.) are not within the defined boundaries, and its location is in Astoria, we felt best to include it in our Long Island City market report.
Retail rates in Long Island City continue to fluctuate as the market is still finding its equilibrium. Although rents on top corridors continue to ask in the low $100s, the asking average rent of ground floor space is close to $45 per-square-foot. The market has approximately half a million square feet of available at ground space.
Market Units
12,547Studio Rents
$2,410One Bed Rents
$2,920Two Bed Rents
$3,855Three Bed Rents
$5,067MULTI
FAMILY
Units in Construction
8,683Square Ft. In Construction
7,751,758 SFProposed Units
6,523
RETAIL
Ground Fl. on the Market
496,630 SF
Top CorridorsJackson Avenue
Queens PlazaVernon Boulevard
> 5000 SF | RentsAverage: $47.34
Weighted Avg: $57.82
2001-3000 SF | RentsAverage: $37.32
Weighted Avg: $37.42
3001-5000 SF | RentsAverage: $37.85
Weighted Avg: $37.42
Vacancy Rate
4.2%Industrial/Flex Inventory
25,835,251 SFAverage Space
8,156 SFNet Absorption
(83,468)The industrial market remains strong, despite a negative net absorption in the third quarter. Overall asking rents among the submarket's industrial and flex properties (over 900 buildings) increased close to 2% since last quarter.
Retail Avg. Rents
$44.89Weighted Avg. Rents
$51.89Avg. Ground Space
5,537 SF< 1000 SF | Rents
Average: $57.12Weighted Avg: $54.59
1001-2000 SF | RentsAverage: $50.75
Weighted Avg: $50.47
Industrial Rents
$17.01Quarter to Quarter
+ 1.85%Quarter to Quarter
+ $0.31Class B
$19.32Class C
$16.41 INDUSTRIALAvailability Rate
6.7%
MARKET SYNOPSISOFFICE
INDUSTRIAL
RETAIL
MULTI FAMILY
Asking rents in offi ce properti es have risen 2.17% over last quarter. The market is att racti ng tenants who are expanding or relocati ng from Manhatt an and Downtown Brooklyn. Tenants such as Macy’s and the Joff rey Ballet Center.
The industrial market remains strong, despite a negati ve net absorpti on in the third quarter. Overall asking rents among the submarket’s industrial and fl ex properti es (over 900 buildings) increased close to 2% since last quarter.
Retail rates in Long Island City conti nue to fl uctuate as the market is sti ll fi nding its equilibrium. Although rents on top corridors conti nue to ask in the low $100s, the asking average rent of ground fl oor space is close to $45 per-square-foot. The market has approximately half a million square feet of available at ground space.
The multi family sector holds the most interest among landlords, investors and increaslingly tenants. Despite rising rates, the market’s proximity to Midtown Manhatt an and ease of access, has sti mulated the area’s populati on growth.
The Long Island City market is hereby defi ned by the zip code’s, 11101 and 11109. The market boundaries are subjecti ve to diff erent sectors of commercial and residenti al real estate. To provide an overall and proper evaluati on of the submarket, we have applied our metrics of market acti vity throughout these zip code’s. Some excepti ons were applied to the offi ce metrics. For example, although The Offi ces at Studio Square (35-37 36th St.) are not within the defi ned boundaries, and its locati on is in Astoria, we felt best to include it in our Long Island City market report.
3 LEE & ASSOCIATES NYC
OFFICELIC MARKET REPORT3Q2015
LONG ISLAND CITY MARKET REPORT • 3Q2015
Savanna opted to refi nance One Court Square in lieu of
selling the 1.5 million-square-foot iconic Class-A tower. It’s
possible that the Tower might be converted to an alternative
use when Citibank’s lease expires in 2020.
Macy’s made headlines when it announced it is relocating its
photo studio and production space from Downtown Brooklyn
to Long Island City. The department store retailer is relocating
to the Factory, located at 30-30 47th Avenue. The building
was historically utilized by Macy’s to warehouse its furniture
inventory. Asking rents for the 150,000-square-foot space were
reported to have been in the mid-$30s.
Managed space provider WeWork leased 60,000 square
feet at the Offi ces at Studio Square (35-37 36th Street). The
taking rent for the space was reportedly just under $40 per-
square-foot for 15 years. The Vanbarton Group, purchased the
property June 2014 for close to $30 million.
Investor Daniel Loeb partnered with Brickman in their
purchase of 30-02 48th Avenue. The industrial warehouse
is being converted to offi ce use, which will comprise close
to 150,000 square-feet.
OFFICEThe Long Island City offi ce market continues to increase in popularity with tenants fi nding themselves priced out of
Manhattan. Since last quarter, overall asking rents have risen 2.17% or by $0.71 to $33.37 per-square-foot. The market’s
offi ce inventory also includes fl ex-properties that consist of over 12 million-square-feet. The market has a small amount to
traditional glass-and-steel Class-A space. Most of the offi ce conversions of industrial/fl ex properties are delivering what could
be classifi ed as Class-A offi ce space. Rents for these spaces, asking an average of $34.03 per-square-foot is notable, as the
price for traditional Class-A space is $35.75 per-square-foot. Class-C fl ex space still offers the greatest discount at average
asking rents of $25 per-square-foot.
CoStar
CoStar
4 LEE & ASSOCIATES NYC
OFFICELIC MARKET REPORT3Q2015
LONG ISLAND CITY MARKET REPORT • 3Q2015
OFFICE CHARTS
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
Plaza District Rockefeller GrandCentral
MidtownWest
MidtownEast
TimesSquare
Midtown vs Long Island City Discount
Rents Long Island City
$- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00
Midtown South vs Long Island City Discount
Rents Long Island City
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
City Hall|Insurance Dist. Financial District World Trade Center
Downtown vs Long Island City Discount
Rent Long Island City
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
(300,000)
(200,000)
(100,000)
0
100,000
200,000
300,000
400,000
500,000
4Q2010 3Q2011 2Q2012 1Q2013 4Q2013 3Q2014 2Q2015
Long Island City Office Activity
Net Absorption Availability Vacancy
$- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00
Midtown South vs Long Island City Discount
Rents Long Island City
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
Plaza District Rockefeller GrandCentral
MidtownWest
MidtownEast
TimesSquare
Midtown vs Long Island City Discount
Rents Long Island City
$- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00
Midtown South vs Long Island City Discount
Rents Long Island City
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
City Hall|Insurance Dist. Financial District World Trade Center
Downtown vs Long Island City Discount
Rent Long Island City
5 LEE & ASSOCIATES NYC
OFFICELIC MARKET REPORT3Q2015
LONG ISLAND CITY MARKET REPORT • 3Q2015
Industrial asking rents increased 1.85% from last quarter, to $17.01 per square foot, equivalent to an increase of $0.31 per square foot. The difference in asking rents between Class B and C properties is almost $3 per square foot. LaserShip, a package delivery service and an Amazon vendor announced that its vacating 36-01 47th Avenue at the end of its term and relocating further east to Ridgewood. Mana Products listed its warehouse at 27-11 49th Avenue for $65 million. Mana’s decision behind the disposition of its asset is to acquire and develop a larger warehouse in the area. Faviana International Inc., an apparel company based in Manhattan’s Garment District is relocating the majority of its operations to Long Island City. They acquired 31-10 Hunters Point Avenue, 17,800 square feet for their warehouse and distribution center.
RETAIL
INDUSTRIAL
Retail rates in Long Island City continue to fl uctuate as the market is still fi nding its equilibrium. Rents on top corridors continue to ask in the low $100s per square foot. The top retail corridors are Jackson Avenue, Vernon Boulevard, Court Square and the Queens Plaza area. Communitea, relocated from Vernon Boulevard to 11-18 46th Road. The Ramen Burger, made famous in Brooklyn’s Smorgasburg, opened its fi rst outpost at 46-01 5th Street. The site is also home to the Rockaway Brewing Company. The Falchi Building welcomed Astoria Distilling Company, which will operate a tasting room adjacent to its production space on the building’s ground fl oor.
Lee & Associates NYC600 Madison Avenue, Third Floor
New York, NY 10022 | 212.776.1200www.leeassociatesnyc.com
James WachtPresident
Peter BrausManaging Principal
Henry AbramovResearch Manager
With offi ces
across the nation, the
Lee & Associates ® group
of independently owned
and operated companies
is the largest provider of
regional commercial real estate
services in the United States and
the fourth-largest full-service
commercial real estate
organization overall.