Class A office vacancies could reach 1990s highs

New York /
Jul.July 27, 2012 01:30 PM

Manhattan’s Class A office market could see its highest vacancy rate since December 1996, said Robert Sammons, vice president of research at commercial brokerage Cassidy Turley, in a column for the New York Observer.

The amount of vacant Class A office space is on track to increase to 33.62 million square feet, from the current 24.48 million square feet of vacancies, by 2013 — a 3.4-percentage-point spike that would bring the vacancy rate to 13.3 percent, the highest level in 17 years.

Sammons determined the vacancy rates by calculating the current amount of vacant space, plus space that will become vacant within six months and all space being marketed for occupancy date by the end of 2013. If net absorption remains flat — which would represent an improvement over the 500,000 square feet of negative absoprtion experienced in the second quarter — Manhattan will be overwhelmed by Class A vacancies. That’s largely because 1 and 4 World Trade Center and 2 and 4 World Financial Center will be opening, and so the downtown submarket will see the worst vacancy rates. However, Midtown could be burdened as well, as a number of vacancies persist along Sixth Avenue. Midtown South should fair best, but the success of all of Manhattan’s Class A office space will hinge on the strength of the global and U.S. economies, Sammons said. [NYO] – Christopher Cameron


Related Articles

arrow_forward_ios
110 East 42nd Street with SL Green's Marc Holliday and Meadow Partners' Jeffrey Kaplan (SL Green, NYU Photo Bureau, Meadow Partners)
SL Green unloads Midtown building for $117M
SL Green unloads Midtown building for $117M
Data show office workers home for holidays — just like every day
Data show office workers home for holidays — just like every day
Data show office workers home for holidays — just like every day
The HSBC Tower and Andrew Chung of Innovo Property Group (Google, Innovo)
Andrew Chung’s Innovo Property Group grabs HSBC building in Bryant Park
Andrew Chung’s Innovo Property Group grabs HSBC building in Bryant Park
Manhattan office leasing breaks 3M sf barrier for first time since early 2020
Manhattan office leasing breaks 3M sf barrier for first time since early 2020
Manhattan office leasing breaks 3M sf barrier for first time since early 2020
Virtual real estate speculators notch another record deal
Virtual real estate speculators notch another record deal
Virtual real estate speculators notch another record deal
Clockwise from top left: 2875 Morningside Heights, 38-21 12th Street in Long Island City, 46 Nevins Street in Brooklyn (Google Maps)
Investors flip NYC industrial, hotel, office buildings in pre-holiday frenzy
Investors flip NYC industrial, hotel, office buildings in pre-holiday frenzy
From left: Robert Mercer with 48-05 Metropolitan Avenue and Gary Barnett with 17 West 60th Street (Getty, Google Maps, Bulado General Contractors Corp)
$730M loan bundle funds slew of NYC projects
$730M loan bundle funds slew of NYC projects
5 East 59th Street (Google Maps, 5e59.com)
Singapore bank sues to foreclose on ex-Playboy Club building
Singapore bank sues to foreclose on ex-Playboy Club building
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...