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NYC Office Market Report, First Quarter 2017

NYC Office Market Report, First Quarter 2017

NYC Office Market Report, First Quarter 2017 was compiled using data provided by Costar, the Commercial Real Estate Information Company.

The average quoted rent in the NYC office market across all building classes was $65.41 per square foot with a vacancy rate of 8.40%.

 

 

Year-over-year market comparisons are found in the table below:

NYC office

Costar reports that the volume of leasing transactions in the NYC office market has slowed. The Net Absorption for the overall New York City office market was negative (1,652,906) square feet during the First Quarter of 2017. That compares to a positive 747,713 square feet in the Fourth Quarter of 2016. (Net Absorption is the net change in occupied space over a period of time.)

 SUB-MARKET ANALYSIS 

NYC office

6 LARGEST LEASES SIGNED IN The first quarter of 2017

RBC Capital Markets:  395,279 RSF renewal at 200 Vesey Street in the World Trade Center sub-market.

378,243 RSF at 4 World Trade Center.

 

New York State Attorney General: 342,484 RSF at 28 Liberty Street in the Financial District sub-market.

Kramer Levin Naftalis & Frankel, LLP: 285,780 RSF renewal at 1177 Avenue of the Americas in the Times Square sub-market.

Tommy Hilfiger: 202,797 RSF at 285 Madison Avenue in the Grand Central sub-market.

127,672 RSF at 1211 Avenue of the Americas in the Times Square sub-market.

 

TOP 3 CONSTRUCTION PROJECTS IN THE NYC OFFICE MARKET

There were 15,748,666 square feet of office space under construction during the first quarter of 2017.

3 World Trade Center: 2,861,402 RSF. Delivery Q1 2018. 37% preleased. Developer-Silverstein Properties, Inc.

30 Hudson Yards (500 West 33rd St.): 2,600,000 RSF. Delivery Q3 2019. 100% preleased. Developer- Oxford Properties Group.

1 Manhattan West (400 West 33rd St.): 2,216,609 RSF. Delivery Q1 2019.  41% preleased. Developer- Brookfield Office Properties, Inc.

strategies FOR REDUCING OFFICE EXPENSE

(1) Space Reduction and Redesign:  Businesses can reduce the size of their offices by modifying the design and reducing the area occupied by each employee. Use our office space calculator to estimate your essential requirement.

(2) Flex Work, Business Centers and Telecommuting: Flexible work schedules may allow two or more employees to utilize a specific work area. Some companies use hourly or daily rentals at off-site business centers for part-time staff and conferences. Where practical utilize telecommuting.

(3) Relocation: Consider moving from a high rent building and neighborhood to a more economical one. Many Class B and mid-block buildings have been recently upgraded and provide contemporary work environments at reduced rental rates.

 

ABOUT COGENT REALTY ADVISORS 

Cogent Realty Advisors is an independent and licensed NO FEE Realtor with over 15 years of experience representing businesses that lease NYC office space. Our goal is to help you find the right office at the right price. For information, phone Mitchell Waldman at (212) 509-4049.

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