March 2002: Manhattan Office Space Update
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Market availabilities are relatively unchanged in past 30 days with prices drifting slightly downward.
Announced and pending corporate relocations will add significant space to the market in the next 3 to 6 months as many firms are considering going from corporate campuses in Manhattan to decentralized facilities outside Manhattan on different power grids, telephone central offices and transportation networks.
Two recent examples are Goldman Sachs Equity Department moving to Jersey City and Morgan Stanley purchasing the former Texaco Headquarters in Westchester. The multiplier effect of moving high-ticket jobs out of Manhattan to Jersey City, Westchester and the boroughs could exacerbate the vacancy office rates in Manhattan and ultimately affect the high-end residential market as executives relocate their housing closer to their new work location.
Landlords are very aggressive in making deals with desirable companies.
Incentives are now available from State and City Government for businesses to relocate or renew leases in downtown Manhattan.
Click here for applications. incentives.htm
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| MANHATTAN CLASS A OFFICE VACANT SPACE (In Millions of Rentable Square Feet)) |
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Direct |
Sublease, |
Total |
| Manhattan Office A |
12,324,462 |
8,681,076 |
21,005,538 |
| Total Market |
32,804,204 |
14,642,889 |
47,447,093 |
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MANHATTAN CLASS A OFFICE VACANT SPACE NOW AND IN THE NEXT TWO YEARS
(In Millions of Rentable Square Feet) |
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Direct |
Sublease, |
Total |
| Manhattan Office A |
27,179,078 |
11,492,150 |
38,671,228 |
| Total Manhattan Office A |
53,881,067 |
18,651,621 |
72,532,688 |
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