NYC Office Market Report Third Quarter 2016
NYC Office Market Report Third Quarter 2016
NYC Office Market Report Third Quarter 2016 was compiled using data provided by Costar, the Commercial Real Estate Information Company.
For a more recent NYC Office Market Report LINK HERE
For comparison, at the end of the Second Quarter of 2016 the average asking rent was $60.26 per rentable square foot with a total vacancy rate of 7.8%. Costar reports that the volume of office leasing transactions has slowed year-over-year particularly among smaller Tenants. Most indicators are pointing to a modest correction that will result in future reductions in rent and (or) enhanced Tenant Incentive packages throughout the city.
SUB-MARKET ANALYSIS
TOP 6 BIGGEST LEASES SIGNED in Q3 2016
Coach, Inc.: 694,000 RSF at 10 Hudson Yards in the Penn Plaza sub-market.
Random House: 631,025 RSF renewal at 1745 Broadway in the Columbus Circle sub-market.
Denton’s: 190,576 RSF at 1221 Avenue of the Americas in the Times Square sub-market.
WeWork: 159,306 RSF at Tower 49 in the Plaza District sub-market. (WeWork also leased 77,930 RSF at 142 West 57th Street in the Columbus Circle sub-market.)
Zurich America Insurance Co.: 131,856 RSF at 4 World Trade Center in the World Trade Center sub-market.
W. W. Norton & Company, Inc.: 109,735 RSF renewal at 500 Fifth Avenue in the Times Square sub-market.
TOP 3 UNDER-CONSTRUCTION PROJECTS
There were 13,507,005 square feet of office space under construction at the end of the third quarter 2016.
3 World Trade Center: 2,861,402 RSF. Delivery Q1 2018. 37% preleased. Developer-Silverstein Properties, Inc. There
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.): 2,300,000 RSF. Delivery Q1 2019. 29% preleased. Developer- Brookfield Office Properties, Inc.
IDEAS FOR REDUCING NYC OFFICE EXPENSE
(1) Space Reduction and Redesign: Businesses can reduce the size of their offices by modifying the design and shrinking the area occupied by each employee. Use our office space calculator to estimate your essential requirement. Some companies use hourly or daily rentals at off-site business centers for part-time staff and conferences.
(2) Flex Work and Telecommuting: Flexible work schedules may allow two or more employees to utilize a specific work area. Where practical utilize telecommuting.
(3) Relocation: Downtown has many quality buildings for lease at substantial discounts over comparable midtown properties. Additionally, the Lower Manhattan Commercial Revitalization Program provides rent credits totaling $10.00 PSF for relocating businesses leasing space in eligible buildings.
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 secure the right office for your business at the right price. For information, phone Mitchell Waldman at (212) 509-4049.
#officereport
