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Episode Info: New York Real Estate Market Updates Here we dig into the latest data and trends to find out what is really happening in the local Office market to help landlords, real estate investors, and developers make the smartest financial moves.  So, what’s new in New York Real Estate? Let’s take a look at the numbers… Although more new construction inventory appears to be hitting the market, creating more available office space, asking rents just keep going up. Big players like Microsoft, JP Morgan Chase and WeWork continue to be bullish on NYC real estate and office space in the Big Apple. Among the most notable stats, this quarter is a 45% jump in new leasing in Midtown South, while Downtown Manhattan leasing fell 29% from Q1 2019. Financial West’s vacancy rates have swollen to over 22%, while Class B rents have risen to a new all-time high of $57.40 per square foot.   In Manhattan  Total inventory rose to 453M square feet Percentage available for lease is up to 9.7% Absorption was negative by over 1.6 million square feet Asking rents are up to $76.57 per foot Over 16.9M square feet of office space is under construction The highest asking rents were found in the Far West Side at $118.73 per square foot. The lowest asking rents were just $52.67 in the East Village Notable leasing activity included: Over 320,000 feet taken by AIG at the Rockefeller Center Almost 213,000 square feet taken by WeWork in Chelsea And Time Warner’s sale and leaseback of 1.5M square feet at 30 Hudson Yards     In Brooklyn Total inventory rose to 35.4M square feet Percentage available for lease rose to 17.4% The absorption rate is up Asking rents are up to $40.45 per square foot on average Office space under construction rose to 4.6M square feet   Notable leasing activity included Rent The Runway’s move from Manhattan to 10 Jay Street in Brooklyn, with 83,000 square feet of space leased.   Notable construction and renovation projects include: 540 Fulton Street Domino Sugar Factory One Willoughby Square   Deliver of new construction is expected to decline through 2022, providing more balance to the market, and potentially more fuel to raise asking rents.   In Terms of Market Factors & Economic Indicators  NYC employment stood steady at 4.6M in Q2 2019 Unemployment rose slightly to 4.3%, above the national average Vacancy rates rose to 10.5% Over 9M square feet of new office space is coming online this year. 84% of it is already reportedly pre-leased. With construction delivery expected to taper off over the next two years, landlords could find more support for even higher rents and availability tapers off.   In summary… Overall this quarter’s data show a strong first half of the year for New York City office markets. It’s perhaps in far better shape than retail. Notable global corporations continue to prize prime property here. Many are expanding their footprints, with more expanding into or relocating Brooklyn, where r...
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