NYC Office Market Report, Year-End 2018

NYC Office Market Report, Year-End 2018

NYC Office Market Report, Year-End 2018 was compiled by Cogent Realty Advisors 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.  

Cogent Realty Advisors is an independent and licensed NO FEE Realtor with 20 years of experience representing businesses that lease NYC office space

 

 

NYC Office Market Snapshot

At year-end 2018 the average quoted rent in the NYC office market across all building classes (A, B & C quality) was $62.00 per square foot. This is a $0.48 PSF (0.8%) increase compared to $61.52 PSF in the third quarter. The vacancy rate in the fourth quarter was 7.9%, an increase from the prior quarter’s 7.7%.  Additional market data is found below. 

Rent and Vacancy By Neighborhood

Fourth quarter average quoted office rent and vacancy by neighborhood is found in the table below.

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 Some office buildings do not publish this information.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

 

5 Largest NYC Office Leases Signed in Q4 2018

Deutsche Financial Services, Inc: 1,213,998 RSF at One Columbus Circle (Time Warner Center). 

Bloomberg LP: 467,537 RSF renewal at 120 Park Avenue in the Grand Central district. 

Peleton Interactive LLC: 299,260 RSF at 441 Ninth Avenue in the Penn Plaza/Fashion district.  

Google: 266,021 RSF at 315 Hudson Street in the Hudson Square district. 

MPG Operations LLC: 252,299 RSF at 399 Park Avenue in the Plaza district.

 

Top 3 Office Construction Projects at Year- End 2018

The Spiral

At year-end there was 17,261,375 square feet of office space under construction. 

The Spiral at 66 Hudson Boulevard: 2,850,000 RSF. Delivery Q4 2022. 28% pre-leased by Pfizer. 

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

One Manhattan West (400 West 33rd St.): 2,216,609 RSF. Delivery Q1 2019. 86% pre-leased.

 

3 Largest NYC Office Buildings Delivered in 2018

61 Ninth Avenue, next to Chelsea Market

3 World Trade Center: 2,861,402 RSF. 

512 West 22nd Street: 242,000 RSF. 

61 Ninth Avenue: 167,170 RSF. 

 

 

Strategies for Reducing Office expense 

(1) Relocate for Savings: Consider moving from a high rent building to a more economical location. During the current bull market many “value-priced” Class B buildings have been upgraded and now provide new lobbies and elevators, new mechanical infrastructure and newly constructed office spaces.

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

(3) 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.

 

Links for News about NYC & Global Real Estate

It is estimated that in 2018, 18% of all office space leased in NYC was by coworking companies: Coworking Leasing Activity Increased 200% Last Year- Report

But investors are becoming wary due to poor financial performance and over-saturation: SoftBank planned to invest $16B into WeWork. That number just got way smaller.

Some boutique financial firms are paying unprecedented rents for luxury office space: Triple Digit Office Rents Broaden Their Base

Landlords are finally responding to the blight of long term store vacancy: Retailers rejoice: Landlords are lowering rents to meet the market

Slowing GDP growth will result in lower levels of real estate activity: Why Real Estate Activity will Inevitably Slow

 

ABOUT COGENT REALTY ADVISORS 

Cogent Realty Advisors is an independent and licensed NO FEE Realtor with 20 years of experience representing businesses that lease NYC office space. We will find your company the right office at the right price. For information, phone Mitchell Waldman at (212) 509-4049.

#NYCOfficeYearEnd2018

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One World Trade Center Rental Guide 2019

One World Trade Center Rental Guide 2019

Renting an office at One World Trade Center is a defining moment for a global business.

• A universally recognized symbol of prosperity, freedom and resilience

• An ultra-modern urban design with rich corporate amenities and best-in-class technology, efficiency and safety  

• Excellent value for your rental dollars 

• Direct in-building access to the new Fulton Street Station transportation complex and luxury shops at the Westfield  World Trade Center. The architectural focal point of this underground city is the Oculus.  

• High quality neighborhood restaurants, hotels and services. Link follows:  Downtown Alliance.

• Professional on-site ownership and management

Who is Leasing Offices at One World Trade Center? 

 

One World Trade Center Offices for You

One World Trade Center is a center core office building which means that the elevators, stairs and mechanical systems are in the middle of each floor. As a result all spaces are column free and have spectacular light and views. 

At One World Trade Center most work spaces are designed as wide-open collaborative work environments. However, tradition layouts with perimeter glass fronted offices and conference rooms are both efficient and impressive. 

New Tenants have a choice of three rental programs:

#1: Pre-built move-in ready office space with elegant finishes;

#2: Unfinished/white box space that the Landlord will build to your design specifications;

#3: Unfinished/white box space that you can build on your own utilizing money (the “cash contribution”) and time (the “rent abatement”) provided by the Landlord.

2019 Offices for Lease

Shown below are currently available pre-built offices. Furniture shown is for reference only and not included. Offices measuring less than 5,000 rentable square feet are not frequently constructed. Call with your requirement (212) 509-4049. ​

4,719 RSF	6,475 RSF
7,530 RSF	8,995 RSF
9,425 RSF	10,847 RSF
12,698 RSF	36,099 RSF
Collaborative Design	Traditional Design

PRICING at One WOrld Trade Center

Starting in 2019 more flexible lease terms are being offered. Asking rents are from $72.00 to $85.00 per rentable square foot (PSF) depending on the floor and view.

For example, the 4,719 RSF office shown above has an asking rent of $72.00 per rentable square foot. $72.00 X 4,719 RSF = $339,768 per year or $28.314 per month*. 

Cogent Realty has a solid track record negotiating lower rents and other leasing incentives like free rent for its clients. Call us for details, 212-509-4049. 

*Note: Additional office overhead costs include electricity, annual rent and real estate tax increases. Municipal Incentives may be available to reduce your occupancy cost. 

One World Trade Center – Your Corporate HQ 

Lobby

• Class A ultra-modern office building built in 2014

• 1,776 feet tall, the highest in the Western hemisphere

• 3,038,168 RSF total building area with 40,000 RSF floors and 104 floors

• 24- hour, 7- day access, uniformed lobby concierge, security monitoring and turn-style access cards for Tenants

• 71 fast passenger elevators and 12 escalators

• LEED Gold certification

• Owned and managed by Durst Corporation and the Port Authority of NY/NJ

• Alternate address: 285 Fulton Street, New York, NY 10007

Introducing One World Commons

Located on the 64th floor, One World Commons is a 25,000 square foot amenity space designed to attract, inspire and retain companies and their employees. This world-class social and business hub includes conference, meeting and event rooms, lounges, a game room and cafe. 

ABOUT COGENT REALTY ADVISORS 

Cogent Realty Advisors is an independent and licensed NO FEE Realtor with over 17 years of experience representing businesses that lease NYC office space. Our mission is to help you find the right office at the right price. For information, phone Mitchell Waldman at (212) 509-4049.

#oneworldtraderental2019

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