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
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.