New Vacancy Rates in New York City
Position has now switched as new technology companies are residing in places such as Manhattan where it fills up some of the vacancy gap. The vacancies level in lower Manhattan improved recently. The percent vacant has fallen to a new low since 2008. This resulted from the expanding technology sector that are settling along downtown Manhattan.
The vacancy rate has dropped from 9.2 percent to 8 percent when compared with real estate usage last year. Despite the growth for the technological sector in New York City, the financial industry has shown stagnant movement in improvement. Furthermore the total office vacancies remained the same, coming in at 9.1 percent. However, the average price per square foot demanded by landlord grew 1.2 percent to 59.60 per square foot.
Lower Manhattan are said to be due for a hard drop in the upcoming quarter, resulting in a about 12-13 percent vacancy rate since office space at Brookfield Place are set open after the departure of Merrill Lynch Company. The lease will expire on September and the office space are set to be vacant for about 6 months. Along with this new office space opening up at Brookfield, when the Freedom Tower opens more vacant spaces are expected to become available.
Written by: Victor To