investment sales market

As residential markets all over the country crumbled this past summer, Manhattan’s remained strong. So, perhaps it’s little surprise that as commercial markets throughout the country now grapple with problems, Manhattan’s remains strong.

Thinking about commercial real estate now in the U.S. has to revolve around the problems in the credit markets. Money’s harder to come by for building buyers to finance their deals, and the credit market problems affect financial services firms that deal in debt and financing; financial services firms make up the bulk of leasers in the Manhattan office market.

Therefore, credit market problems are supposed to hamper the commercial market, squeezing both the would-be buyers of Manhattan buildings and a lot of the companies that lease space inside of them.

Whatever effect these problems are having on the investment sales market (when’s the last time you read about a $1 billion building buy in Manhattan), new information from brokerage Jones Lang LaSalle shows no impact so far on the prices for Manhattan office leases. Landlords are still able to charge higher-than-average rents to tenants in the borough’s choicest buildings. And tenants are still eager to pay.  read more »