Education sector is becoming a major player in Manhattan’s office-leasing market

New York /
Jan.January 14, 2013 08:30 AM

As New York City families pour into what were once almost exclusively commercial areas, the education sector has become a major player in Manhattan’s office-leasing market, the Wall Street Journal reported. Since 2005, the leasing footprint of the schools, universities and other educational services has increased 47 percent to 8.1 million square feet from just 5.5 million square feet as of November, according to CBRE data cited by the Journal.

The most significant area of educational-leasing activity has occurred in Midtown South and Lower Manhattan, which reflects the residential push into historically commercial neighborhoods.

“As far as our records go back, which is to the 1970s, there has never been an increase like this [in educational leasing], and it’s directly related to the increase in population growth and the increase in value of properties,” Bruce Surry, CBRE executive vice, who worked on the firm’s “Taking the Office Market to School” report, said.

Moreover, increased post-recession availability and lower asking rents in parts of Midtown South and downtown have also encouraged educators to expand their footprints, Surry told the Journal.”Prices will restrict and inhibit options for education tenants,” according to Mr. Surry. “And most schools sign 15- to 20-year leases.” [WSJ]Christopher Cameron


Related Articles

arrow_forward_ios
Non-New York residents who worked remotely last year will still have to pay New York taxes. (iStock)
NY tax officials crack down on remote workers
NY tax officials crack down on remote workers
SL Green's Marc Hollday, 635-641 Avenue of the Americas, Infor's Kevin Samuelson. (Infor, SL Green)
Software company Infor renews 90K sf Chelsea lease
Software company Infor renews 90K sf Chelsea lease
Paramount Group CEO Albert Behler and 1301 Avenue of the Americas. (Paramount)
Paramount Group preps for $850M refinance
Paramount Group preps for $850M refinance
Deutsche Bank Chief Financial Officer James von Moltke (Getty)
Deutsche Bank eyes hybrid model while JPMorgan plans office return
Deutsche Bank eyes hybrid model while JPMorgan plans office return
Bill Gates and 619 West 54th Street (Getty, Taconic Partners)
Bill Gates-backed bio startup expanding in NYC
Bill Gates-backed bio startup expanding in NYC
Vornado’s Steve Roth and 888 Seventh Ave (Getty, Google Maps, iStock)
Vornado sues Hongkun USA, seeking $1.1M in rent
Vornado sues Hongkun USA, seeking $1.1M in rent
Vornado’s Steven Roth and One Park Avenue (Getty, Vornado)
Here’s what tenants are paying at One Park Ave
Here’s what tenants are paying at One Park Ave
About 17.3 percent of Manhattan office space is available for lease, the most in decades. (iStock)
Manhattan office market’s 25% drop is ominous sign for landlords
Manhattan office market’s 25% drop is ominous sign for landlords
arrow_forward_ios

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

Loading...