New York City office
and retail Market Research

September 2015

September 2015 New York Commercial Real Estate Market Report

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Manhattan Office: Manhattan office construction is at its highest level in 25 years, with 19 buildings containing 9.7 million square feet under construction by end of next year and 4.3 million square feet of new office construction this year. Even with all this new construction, Manhattan Office vacancy only went up slightly... Manhattan Retail: Retail pricing in Manhattan remains overly optimistic with relatively little new supply and tepid demand due to increased retail prices. Over time, retail prices should moderate until vacancies are absorbed. ...

New York Market Overview

  • Total Manhattan Class A Office vacancies decreased from 9.4 % vacant to 9.3 % vacant
  • Total New York City Office vacancy decreased from 8.0 % vacant to 7.9 % vacant
The Meatpacking District office market is booming with a 1.8 % vacancy rate to 9 percent in Manhattan as a whole. Google occupies nearly 40 percent of the office space in the area, with a total of 2 million square feet and new tech tenants continue to move in the area. Over the next five years, around 600,000 square feet of new commercial space will open, half will be offices, a 6 percent increase over total office inventory.

Manhattan's office market saw positive absorption for the sixth consecutive month, and average asking rent rose to $40.69 per square foot.

Downtown and Midtown South office markets have some competition with Midtown East. The availability rate for office space in Midtown East dropped to 4.9 percent. Only Noho/Soho had a lower rate, at 4.7 percent. Average asking rent in Midtown East is $66.54 per square foot versus overall Midtown rate of $77.75.

Office construction in the city is at its highest level in 25 years, with 19 buildings containing 9.7 million square feet expected to be erected by the end of next year. New York City is expected to construct 4.3 million square feet of new office space this year.
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