Office vacancies increase throughout Manhattan, as several new office buildings are being built. These buildings include: 7 Bryant Park, developed by Hines and Pacolet Milkin, containing 474,000 square feet of Class A Office.
150 Greenwich developed by Silverstein, near completion and containing 1,034,969 RSF of Class A Office. Leasing for the tower has reached 50%.
Hudson Yard South Office Tower, developed by Related and Oxford Group, containing 1.7 million-square-foot with 3 large leases in place. This is the first building of a 26 acre development, containing 18 million square feet of new construction.
Other new construction planned include:
3 Hudson Blvd, developed by Moinian, planned to contain 1,869,500 SF.
400 W 33rd St - North Tower, developed by Brookfield planned to contain 2,052,864 SF.
New York Market Overview
- Total Manhattan Class A Office vacancies increased from 8.3 % vacant to 9.7 % vacant
- Total New York City Office vacancy increased from 7.4 % vacant to 8.2 % vacant
If you are a corporate tenant looking for Manhattan office space, Downtown looks like your best bet now. The neighborhood had five of the ten largest office spaces currently on the Manhattan market.
The Manhattan office leasing market saw a surprisingly hot close to the summer. Vacancy in the borough now sits at 11.2%, the lowest since 2008.
The Flatiron District is riding high with businesses as it sees inventory of commercial retail space as tight as it has been since two years ago.
The city’s Independent Budget Office is confident there will be enough demand for the glut of office space that Mayor Bloomberg’s Midtown East rezoning plan would create, but has cautioned that tenants’ changing needs could lead to a surplus of space. More than 50 million square feet of new space will serve as sufficient lodging for the base of commercial tenants expected to grow by 2040.
