- Legal and fashion firms accounted for 35% of leasing activity in 2Q15, driven by large deals from Chanel, Morgan Lewis, and Ralph Lauren. Overall leasing activity outpaced historical averages. - Availability remained stable at 11.4% as new supply was absorbed, while average asking rents increased 6% year-over-year to $68.80 per square foot. - Strong leasing in Midtown was led by renewals from Morgan Stanley and Bank of America, while new construction projects like One Vanderbilt saw increased interest. Midtown South leasing focused on new developments and prime neighborhoods.

1. Market Summary
Current Conditions
Market Analysis
MANHATTAN
2Q15 OFFICE MARKET
Uptick in activity from
legal and fashion
tenants drive top deals
The Manhattan office market finished the second quarter of 2015 with 9.5
million square feet of leasing activity, outpacing the 10-year quarterly
average of 8.7 million square feet. Several large blocks hitting the market
countered the strong leasing and held overall availability stable at 11.4%.
Seven new blocks of available space came online in the second quarter,
including the 185,000-square-foot block at Bank of China’s 7 Bryant
Park, which was delivered in June. As a result, the quarterly absorption
total finished slightly negative with 45,945 square feet, while the year-to-
date total reached negative 3.7 million square feet. Manhattan’s average
asking rent finished the quarter at $68.80/SF, up from $68.25/SF in the
first quarter and up 6% from $65.20/SF one year ago.
The FIRE (financial, insurance and real estate) and TAMI (technology,
advertising, media, and information) sectors continued to comprise the
largest shares of market activity, capturing 32% and 22% of total market
activity, respectively. However, law firms and fashion tenants were highly
active in top-tier space this quarter, both expanding their current
footprints in trophy towers and committing to new high-end construction
projects. Law firms accounted for 19% of total leasing this quarter, up
from 8% in the first quarter. Fashion tenants saw an even bigger jump,
capturing 15% of total square footage leased, up from just 4% in the
first quarter.
The largest of these transactions saw high-end fashion house Chanel
renew and expand at 9 West 57th Street for a total of 230,000 square
feet. Law firm Morgan Lewis & Bockius leased an additional 100,200
square feet at 101 Park Avenue, expanding its footprint in the building to
300,000 square feet. In Midtown South, fashion company Ralph Lauren
added 62,197 square feet at the Starrett-Lehigh building in Chelsea for a
total occupancy of 100,000 square feet.
Additionally, legal and fashion firms showed increased interest in new
construction in the second quarter. Each of these firms’ commitments
marked a major milestone in the development of its respective building.
Law firm Skadden, Arps, Slate, Meagher & Flom’s deal for 538,321
square feet as the anchor tenant at Brookfield’s 1 Manhattan West on the
Far West Side will allow construction to commence. Athletic apparel
retailer Nike signed a 147,936-square-foot lease for the entire office
portion of Durst’s 855 Avenue of the Americas development. Law firm
Boies, Schiller & Flexner signed the first deal at Mitsui-Fudosan and
Related Properties’ 55 Hudson Yards, taking 81,835 square feet.
Second quarter leasing demonstrated a bifurcation of the market, as
much of the activity occurred in top-tier assets. As a result, base taking
rents for Manhattan finished the quarter up 21% from last year.
Research
• Legal and fashion firms combined for a 35% share of
market activity, up from 12% in the first quarter
• Overall asking rents rose to $68.80/SF, up 6% year-
over-year
• Availability was stable at 11.4% from 11.5% last quarter
• Seven blocks of space over 100,000 square feet reached
the market in the second quarter, including 185,000
square feet at 7 Bryant Park
-9
-6
-3
0
3
6
2Q05 2Q06 2Q07 2Q08 2Q09 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15
Net Absorption
Square Feet, Millions
6%
8%
10%
12%
14%
16%
$30
$40
$50
$60
$70
$80
2Q05 2Q06 2Q07 2Q08 2Q09 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15
Average Asking Rent (Price/SF) Availability (%)
Asking Rent and Availability
Current
Quarter
Prior
Quarter
Year Ago
Period
12 Month
Forecast
Total Inventory 451MSF 450MSF 447MSF 
Availability Rate 11.4% 11.5% 11.3%  
Quarterly Net Absorption -45,945 -3.3MSF -49,841 
Average Asking Rent $68.80 $68.25 $65.20 
Under Construction 8.6MSF 9.0MSF 8.3MSF 
Deliveries 473,672 0 0 

2. 2
Average Asking Rent by Submarket Availability by Submarket
0
20
40
60
80
100
2Q99 2Q01 2Q03 2Q05 2Q07 2Q09 2Q11 2Q13 2Q15
Midtown Midtown South Downtown
Average Asking Rent ($/SF)
MIDTOWN
Top End of Market Performing Well Among Financial Firms
Midtown availability finished at 11.8% in the second quarter, down
slightly from 12.0% in the first quarter and remaining flat year-over-year.
Strong leasing was largely driven by financial firm expansions and
renewals, with premium assets attracting much of the activity. As a result,
net absorption for the quarter finished at positive 574,267 square feet.
However, leasing has not yet absorbed the large blocks added during the
first quarter. As a result, the year-to-date total remained in negative
territory, with 1.5 million square feet.
Financial services firms accounted for 44% of all Midtown leasing in the
second quarter, with tenant renewals and expansions comprising the
majority of activity. Two of the largest Midtown deals involved high-profile
financial giants opting to renew: Morgan Stanley’s 400,000-square-foot
renewal at 750 Seventh Avenue in April, and Bank of America’s renewal
of 114,767 square feet of space at 1133 Avenue of the Americas in June.
Additionally, two financial firms expanded their operations this quarter to
accommodate rapid growth: Blackstone, after taking 29,000 square feet
at 601 Lexington Avenue in March, added 60,000 square feet across two
additional floors in June for a total of 120,000 square feet; while PJT
Partners, after leasing nearly 100,000 square feet at 280 Park Avenue in
March, took an additional 42,849 square feet in the building in June. With
much of the activity occurring in high-end trophy space, Midtown base
taking rents increased 15% year-over-year.
The Grand Central submarket saw four blocks of space hit the market
this quarter. The influx of value-priced space brought Midtown asking
rents down slightly, to $80.21/SF from $80.40/SF in the first quarter.
However, asking rents finished up 5% from $76.37/SF this time last year.
The city council approved rezoning of Midtown East’s Vanderbilt
Corridor, including SL Green’s One Vanderbilt. The building, which will be
anchored by TD Bank, is due to deliver 1.8 million square feet in 2020.
MIDTOWN SOUTH
New Construction and Prime Neighborhoods Drive Leasing
Availability increased to 9.2% from 8.8% in the first quarter, but remained
down from 9.7% one year ago. While leasing activity was strong and
consisted chiefly of new relocation deals, several large blocks hitting the
market pushed the absorption total to negative 1.0 million square feet.
Year-to-date absorption finished at negative 1.4 million square feet.
Much of the leasing involved mid-size tenants circling top-tier office stock
in prime Midtown South areas while large companies committed to new
development projects on the Far West Side. In the Village, IBM’s Watson
Group added 25,401 square feet at 51 Astor Place in April, bringing the
building to full occupancy. In Soho, a creative firm led by Matthew
Moneypenny leased 29,750 square feet at RFR Realty’s newly-converted
190 Bowery. Meanwhile, the aforementioned Skadden Arps, Nike and
Boies Schiller deals demonstrated the heightened demand for large
modern floor plans in Midtown South.
Strong leasing centered
around top-tier assets
and new construction
TAMI tenants continued to dominate the leasing landscape in Midtown
South, capturing 32% of second quarter activity. However, there was a
considerable upswing in Midtown South activity from fashion and retail
tenants this quarter. Fashion and retail firms accounted for 25% of total
leasing, up from 13% in the first quarter. In addition to the
aforementioned Nike and Ralph Lauren deals, Foot Locker agreed to
lease 145,000 square feet at 330 West 34th Street while Republic
Clothing subleased 50,522 square feet at 1411 Broadway.
The average asking rent jumped to $62.02/SF from $60.03/SF in the first
quarter and finished up 6% from $58.55/SF one year ago.
Research
MANHATTAN
2Q15 OFFICE MARKET
0%
4%
8%
12%
16%
20%
2Q99 2Q01 2Q03 2Q05 2Q07 2Q09 2Q11 2Q13 2Q15
Midtown Midtown South Downtown
Availability Rate (%)

3. 3
Downtown Lease Transactions
Midtown South Lease Transactions
Skadden, Arps, Slate, Meagher & Flom 1 Manhattan West Penn Station Direct 538,321
Nike 855 Avenue of the Americas Penn Station Direct 147,936
Footlocker 330 W 34th St Penn Station Direct 145,000
WeWork 315 W 36th St Times Square South Direct 139,983
Paypal 95 Morton St Hudson Square Direct 95,000
Tenant Building Submarket Type Square Feet
DOWNTOWN
Availability Declines Despite Quiet Quarter of Leasing
Downtown availability fell to 13.5% from 14.0% in the first quarter, but
finished up from 12.5% this time last year. The year-over-year increase is
due to an influx of shadow space hitting the market over the past year.
With no large blocks coming online this quarter, net absorption finished
positive with 420,654 square feet. However, the year-to-date absorption
total remained negative with 789,236 square feet.
Leasing activity was relatively quiet in the second quarter, particularly
among large tenants. The biggest deal was signed by financial advisory
firm GlobeTax, which agreed to take 60,000 square feet at 1 New York
Plaza in June. The most significant news of the quarter involved News
Corp. and 21st Century Fox signing of a letter-of-intent to anchor 2 World
Trade Center. The agreement would have the media giant relocate from
1211 and 1185 Avenue of the Americas in 2020 and occupy 1.3 million
square feet in the building, which is still in the planning stages.
Also of note was the rapidly expanding Downtown presence of shared
workspace provider Coworkrs, which established two new locations in the
second quarter: A 33,000-square-foot location at 55 Broadway was
established in April, and a 40,000-square-foot location at 60 Broad Street
was leased in June. With WeWork’s four Downtown locations comprising
550,000 square feet, Lower Manhattan is emerging at the forefront of the
shared-office movement.
In other leasing news, Downtown incentive programs were renewed and
extended for two years in late June. The programs, which include the
Relocation and Employment Assistance Program (REAP) and Industrial
and Commercial Abatement Program (ICAP), offer tax breaks to
developers and businesses that commit to relocating Downtown.
Asking rents rose slightly to $56.65/SF from $56.30/SF in the first quarter
and finished up 11% from $50.90/SF one year ago.
Research
MANHATTAN
2Q15 OFFICE MARKET
Midtown Lease Transactions
Morgan Stanley 750 Seventh Ave Westside Direct 400,000
Bloomberg 919 Third Ave Eastside Direct 254,556
Chanel 9 W 57th St Upper Fifth/Plaza Direct 230,000
Bank of America 1133 Avenue of the Americas Sixth Avenue/ Rockefeller Center Direct 114,767
Norton Rose Fulbright 1301 Avenue of the Americas Sixth Avenue/ Rockefeller Center Direct 107,215
Tenant Building Submarket Type Square Feet
Tenant Building Submarket Type Square Feet
GlobeTax 1 New York Plz Financial Direct 60,000
Cowork.rs 60 Broad St Financial Direct 40,000
Schnader Harrison Segal & Lewis 140 Broadway Financial Direct 38,161
Cowork.rs 55 Broadway Financial Direct 33,000
Holborn Reinsurance 180 Maiden Ln Financial Direct 29,878

4. 4
Midtown 213,267,306 58,468 11.8% 574,267 -1,214,630 $81.29 $64.59 $80.21
Eastside 22,035,905 0 6.4% 149,435 167,955 $72.20 $50.96 $70.62
Grand Central 54,248,327 0 14.4% -632,663 -1,248,427 $74.34 $52.60 $73.62
Park Ave 24,033,915 0 10.2% 549,065 610,368 $92.72 $89.77 $92.22
Sixth Ave/Rock Ctr 45,765,539 0 12.0% 139,017 -755,896 $85.64 $65.82 $83.93
Upper Fifth/Plaza 27,162,687 58,468 12.0% 109,085 -11,498 $106.81 $71.96 $106.49
Westside/Times Sq 40,020,933 0 11.7% 260,328 22,868 $72.86 $47.23 $70.87
Midtown South 139,296,554 6,066,964 9.2% -1,040,866 -1,377,812 $63.01 $50.74 $62.02
Chelsea 8,575,663 85,202 4.1% -47,126 -43,788 $57.12 NA $57.12
Flatiron/Union Sq 16,170,051 0 11.2% -167,431 24,081 $66.69 $55.51 $65.83
Times Square South 35,984,794 0 11.6% -453,354 -1,002,004 $59.08 $48.80 $57.77
Hudson Sq 10,744,016 0 13.5% -304,011 -365,544 $76.24 $48.57 $75.66
Lower Sixth Ave 3,898,182 0 9.8% 50,884 -127,979 $71.56 NA $71.56
Park Ave South 21,545,546 0 7.8% -151,434 -92,050 $60.95 $47.62 $59.23
Penn Station 32,116,620 5,804,950 7.6% 80,835 55,147 $55.46 $54.26 $55.43
SoHo/NoHo 6,151,367 33,707 5.6% 11,925 76,976 $71.49 $64.58 $70.50
Village 4,110,315 143,105 4.7% -61,154 97,349 $62.40 $55.34 $60.92
Downtown 98,381,772 2,500,000 13.5% 420,654 -731,667 $57.27 $40.12 $56.65
City Hall/Insurance 24,643,832 0 10.2% 110,753 239,435 $48.78 $30.32 $48.05
Financial 55,760,145 0 13.6% 318,955 -418,510 $52.62 $42.80 $52.12
WTC/WFC 17,977,795 2,500,000 17.7% -9,054 -552,592 $73.16 NA $73.16
Manhattan 450,945,632 8,625,432 11.4% -45,945 -3,324,109 $69.62 $55.74 $68.80
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Total Under Total Qtr YTD Direct Sublet Total
Inventory Construction Availability Absorption Absorption Asking Rent Asking Rent Asking Rent
(SF) (SF) Rate (SF) (SF) (Price/SF) (Price/SF) (Price/SF)
Submarket Statistics
MANHATTAN
2Q15 OFFICE MARKET

5. 5
Consumer Price Index (CPI) Employment Growth by Industry
Unemployment Rate Payroll Employment
Employment By Industry
0%
3%
5%
8%
10%
13%
May-10 May-11 May-12 May-13 May-14 May-15
United States New York City
Seasonally Adjusted
Source: U.S. Bureau of Labor Statistics, New York State Department of Labor
Economic Conditions
The local economy maintained steady improvement through May 2015,
with payroll employment growing 2.4% over the past year to reach 4.203
million jobs. The private sector continued to drive growth, adding 94,600
jobs over the same span, while the government sector gained 3,300 jobs.
Considering the burgeoning development boom in New York City, it is
not surprising that the construction industry experienced the largest year-
over-year percentage growth, adding 6,100 jobs for a 17.2% year-over-
year increase. Office-using sectors maintained positive momentum in
May: financial activities employment grew by 1.4% in the past year;
information employment grew 1.9%; and the professional and business
services sector saw the biggest gain, adding 22,000 jobs in the past
year, a 3.3% increase. Lastly, the leisure and hospitality sector continued
strong growth, adding 12,600 jobs since May 2014.
Unemployment in New York was stable at 5.6% in May, well below the
May 2014 rate of 6.4% but still above the national rate of 5.5%.
Total
Manufacturing
Construction
Trade/Transportation/Utilities
Information
Financial Activities
Prof & Bus Services
Education/Health
Leisure/Hospitality
Other Services
Government
-5.0% 0.0% 5.0% 10.0% 15.0% 20.0%
New York City, May 2015, 12-Month % Change, Seasonally Adjusted
Source: New York City Comptroller’s Office
-1%
0%
1%
2%
3%
4%
May-10 May-11 May-12 May-13 May-14 May-15
United States New York-Northern NJ-Long Island
All Items, 12-Month % Change, Not Seasonally Adjusted, 1982-84=100
Source: U.S. Bureau of Labor Statistics
-4%
-2%
0%
2%
4%
6%
May-10 May-11 May-12 May-13 May-14 May-15
United States New York City
Total Nonfarm, Not Seasonally Adjusted, 12-Month % Change
Source: U.S. Bureau of Labor Statistics, New York State Department of Labor
1.8%
3.1%
4.4%
4.5%
5.1%
10.2%
10.8%
13.1%
14.9%
15.9%
16.3%
Manufacturing
Construction
Information
Other Services
Education
Leisure/Hospitality
Financial Activities
Government
Trade/Transportation/Utilities
Health
Business & Professional
New York City, May 2015
Source: New York City Comptroller’s Office
Research
MANHATTAN
2Q15 OFFICE MARKET

6. All information contained in this publication is derived from sources that are deemed to be reliable. However,
Newmark Grubb Knight Frank (NGKF) has not verified any such information, and the same constitutes the
statements and representations only of the source thereof, and not of NGKF. Any recipient of this publication should
independently verify such information and all other information that may be material to any decision that recipient
may make in response to this publication, and should consult with professionals of the recipient’s choice with regard
to all aspects of that decision, including its legal, financial, and tax aspects and implications.
Any recipient of this publication may not, without the prior written approval of NGKF, distribute, disseminate, publish,
transmit, copy, broadcast, upload, download, or in any other way reproduce this publication or any of the information
it contains.
Newmark Grubb Knight Frank has implemented a proprietary database and our tracking methodology has
been revised. With this expansion and refinement in our data, there may be adjustments in historical
statistics including availability, asking rents, absorption and effective rents.
Newmark Grubb Knight Frank Research Reports are also available at www.ngkf.com/research
Newmark Grubb Knight Frank United States Office Locations
Jonathan Mazur
Managing Director, Research
212.372.2154
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Research Analyst
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Research Analyst
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Director, Research
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