New York Market Overview

Manhattan office rents rose rapidly, while vacancies in the Midtown, Midtown South and Downtown areas have dropped. Manhattan retail rents have continued to increase even though vacancies rose only slightly. Manhattan industrial rents continue to increase because industrial space vacancies continue to decline.

In addition to the increase in office rental rates, there has been a marked decrease in free rent, landlord work, and other concessions offered to tenants.

There are only 18 buildings in Manhattan that have vacancies of 250,000 RSF or more. Increasing demand continues to diminish the available inventory of space. In the short term, until new construction comes on-line, prices will only continue to increase. It is only a matter of time until price sensitive corporations start considering moving some of their operations out of Manhattan.