NYC Office Market Report, Second Quarter 2018

NYC Office Market Report, Second Quarter 2018

NYC Office Market Report, Second Quarter 2018 was compiled using data provided by Costar, the Commercial Real Estate Information Company. This report is written for business owners that need accurate information about the local office market. 

In the second quarter of 2018 the average quoted rent in the NYC office market across all building classes was $60.26 per square foot. This represents a $0.87 PSF decrease compared to $61.13 in the first quarter. The vacancy rate in the second quarter was 8.1%, up over the prior quarter’s 7.9%.

 

NYC Office Market Rents and Vacancy by Neighborhood

Second quarter 2018 average quoted office rents and vacancy by neighborhood is found in the table below.

NOTE: (1) The tables above list the average quoted asking rent reported to Costar. Some office buildings do not publish this information. (2)  After lease negotiation the actual contract rent is usually lower.

 

10 Largest NYC Office Leases Signed in Q2 2018

The Spiral: 2,850,000 SF. Begins Construction 7/2018.

Pfizer, Inc.: 792,000 RSF at “the Spiral” 66 Hudson Blvd in the Penn Plaza sub-market. 

Latham & Watkins, LLP: 407,000 RSF at 1271 Ave of the Americas in the Columbus Circle sub-market. 

Discovery Communications: 360,000 RSF at 230 Park Ave South in the Gramercy Park sub-market. 

J. Crew: 321,732 RSF at 225 Liberty Street in the World Trade Center sub-market.  

Facebook, Inc.: 281,213 RSF at 770 Broadway in the Greenwich Village sub-market. 

 

New NYC Office Building Deliveries

3 World Trade Center: 2,861,402 SF. Delivered Q1 2018. 1,390,000 available for lease. Major Tenants are GroupM and McKinsey & Company, Inc. VIDEO HERE.

 

5 LARGEST NYC OFFICE CONSTRUCTION PROJECTS

There was 3,051,211 square feet of office space being constructed during the second quarter of 2018. 

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

One Manhattan West (400 West 33rd St.): 2,216,609 RSF. Delivery Q1 2019.  55% pre-leased. Developer- Brookfield Office Properties. 

Two Manhattan West (385 Ninth Ave.): 1,950,140 RSF. Delivery Q1 2023. 0% pre-leased. Developer- Brookfield Office Properties. 

One Vanderbilt Avenue: 1,732,955 RSF. Delivery Q3 2020. 100% pre-leased. Developer- SL Green Realty Corp., Inc.           

55 Hudson Yards (550 West 34th St.): 1,556,136 RSF. Delivery Q3 2018. 86% pre-leased. Developer- The Related Companies. 

 

Strategies for Reducing NYC 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 to a more economical location. During the current real estate cycle many Class B and mid-block buildings have been upgraded and now provide contemporary work environments and modernized infrastructure at comparatively affordable 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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