Manhattan now shares the top spot for the tightest office market in the U.S.
The borough’s office vacancy rate dropped 0.1 percentage points to 9.7 percent in the second quarter, according to data from research firm REIS cited by the Wall Street Journal. That ties it with Washington D.C. for the lowest office vacancy rate in the country. Washington has held the title for the past four years, largely due to the growing size of the federal government and stimulus measures. The vacancy rate in Washington has grown 0.5 percentage points over the past year and 0.2 percentage points over the past three months, the Journal said.
Meanwhile, tech companies, either local or from the West Coast, have flocked to New York in recent years. For example, Yahoo announced plans in May to lease 176,000 square feet at the former New York Times building, as previously reported. Yahoo took four floors at the 767,000-square-foot Blackstone Group-owned building, located at 229 West 43rd Street, and said it would consolidate its New York employees. [WSJ, 1st item] – Mark Maurer