Trending

Manhattan commercial vacancies drop to post-crisis low of 9%

TAMI tenants accounted for 37 percent of new 10K sf+ leases over the period

Manhattan office vacancies (credit: Cushman & Wakefield)
Manhattan office vacancies (credit: Cushman & Wakefield)

The vacancy rates for Manhattan commercial properties hit a post-financial crisis low in the first quarter of 2016, but new leasing activity was down, according to a report by New York City Comptroller Scott Stringer.

Vacancies hit 9 percent between January and March of this year, down from 9.2 percent in the first quarter of 2015, the lowest level since the first quarter of 2008. Midtown South saw the fastest decline, with rates dropping to 6.3 percent from 7 percent last year.

Sign Up for the undefined Newsletter

New commercial leases on the island were down though, falling 6 percent from Q1 2015, to 6.5 million square feet. Tenants representing the technology, advertising, media and information services (TAMI) sector made the strongest impact citywide, accounting for 37 percent of new leases of 10,000 square feet or more. In Midtown, financial services firms accounted for the greatest share of new leases, at about 33.2 percent, according to Cushman & Wakefield.

Manhattan residential home sales volume grew 8.1 percent over the quarter, with the volume in Brooklyn jumping 26.9 percent. Volume was down in Queens though, falling 1.9 percent, compared to a 32.7 rise in Q1 2015. – Ariel Stulberg

Recommended For You