New York Market Overview
- Total Manhattan Class A Office vacancies decreased from 6.6 % vacant to 6.1 % vacant
- Total New York City Office vacancy decreased from 6.1 % vacant to 5.8 % vacant
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.