New York Market Overview
- Total Manhattan Class A Office vacancies stayed at 9.1 % vacant
- Total New York City Office vacancy stayed at 8.3 % vacant
Manhattan officeManhattan office leasing has been on a gradual downward trend over the past 12 months. Tenants in 2016 leased 33.1 million square feet. The vacancy rate rose to 10.4% from 10% in 2015. 2016 was the third-highest office leasing total in the past 10 years, behind 37.38 million square feet in 2014 and the 33.92 million square feet leased in 2013.
Investment sales in Manhattan declined 38% to $38.9 billion after 2015’s astronomical $63 billion.
Office rents are projected to grow 1.5% in 2017, and retail rents to grow 1.7%.
The Manhattan office market closed 2016 with an average asking rent of $72.82 per square foot, and 12.5 million square feet under construction.
In 2016, 106 transactions were completed at starting rents of $100 per square foot or higher, representing 9% of the 24 million square feet leased in Midtown and Midtown South in 2016.
Total Manhattan Class A Office vacancies stayed at 9.1 % vacant