The Manhattan office market consists of more than 430 million square feet (msf) and is the nation’s largest commercial market. Iconic buildings such as the Empire State and Chrysler buildings pierce the Midtown skyline. Midtown is the core of the market, while Midtown South is a mecca for the creative and technology sectors. Lower Manhattan or Downtown is home to Wall Street, the heart of the United States’ banking and financial markets, and the World Trade Center. Since New York is one of the world’s most international cities, many foreign companies have a major presence here.
The retail market in Manhattan is one of the largest in the United States, supported by robust tourism as well as a dense and comparatively affluent local consumer base. With street level retail on most major streets and avenues, the landscape is very diverse. The areas of upper Fifth and Madison Avenues, in Midtown, are among the most sought-after in the world. Major retailers including Saks Fifth Avenue and Bergdorf Goodman line Fifth Avenue, while luxury brands such as Louis Vuitton, Tom Ford and Hermes are located along Madison Avenue. Closer to Midtown South and Downtown, art galleries and showrooms gravitate towards the trendy neighborhoods of Soho and the Meatpacking District.
With unprecedented access to air and sea ports, the Tri-State Region is one of the largest industrial markets in the United States. Northern New Jersey is the largest industrial market in the region with over 225 msf of warehouse, distribution and manufacturing space. Both JFK and Newark Airports offer unprecedented access to international markets and cargo.
Given the size and scope of the Manhattan office market, investment interest is very strong. Both institutional and individual investors alike are active in the market. The surge in foreign and domestic capital seeking Manhattan real estate has not waned, and demand still exceeds supply. Sales volume has risen over the last year as commercial real estate fundamentals have improved. Total volume in 2011 was much higher than that in 2010 but remains well-below peak levels recorded at the height of the market in 2007. Investment demand is asset-specific, with institution capital competing for trophy core assets and driving pricing near or beyond all-time highs for office, luxury retail and multi-family assets. Private investors compete alongside institutional capital for multi-family properties with strong fundamentals through the New York metro area, with demand for retail and office ownership varying substantially through the submarkets at the periphery of the area based on the base employment and demographic composition unique to each.
Avison Young’s expanding presence around the globe included the opening of our New York office in 2012. As a global hub of international business and commerce, New York City serves as the core of one of the largest economies in the world. Our exclusively selected best-in-class advisors provide comprehensive consulting and real estate services to leading corporations throughout the world.
Avison Young’s principals deliver results that are aligned with strategic business objectives, supporting real estate initiatives that add value and build competitive advantage for our clients. Our advisors are industry experts in tenant and landlord representation (office, retail and industrial), capital markets (investment sales, debt and equity placement and note sales) and valuation, providing clients with a full range of consulting and valuation services. With our seamless integration of services for our clients, we also perform project and investment management, third-party asset acquisitions and property management. Avison Young’s pre-eminent New York team is built around the intellectual capital of its advisors, consultants and professionals. Our best-in-class strategy and team-centered approach positions our firm to execute the most complex real estate transactions and exemplify our client-integrated approach model. As a world-class organization, our New York advisors work rigorously with our Avison Young partners throughout the firm and provide acute transaction strategy to ensure clients are provided with the full scope of our experience and capital.