Manhattan’s stock of Class B office space down 11% from 1995

TRD New York /
Feb.February 10, 2014 05:51 PM

Renovations, conversions and demolitions have played a major role in an 11 percent drop in more affordable Class B office space in Manhattan over the past 19 years, according to Jones Lang LaSalle data.

Firms are increasingly limited to outer-borough neighborhoods such as Downtown Brooklyn or Long Island City in Queens for Class B office space — a pillar of the economy as it is often rented by start-ups and smaller companies just getting their bearings. Downtown Manhattan saw the largest decline – by 30 percent – in Class B stock in the borough since 1995. The media and advertising sectors also tend to favor Class B properties. 

“Buildings that were converted didn’t warrant office reinvestment,” John Wheeler of Jones Lang Lasalle Told The Wall Street Journal. “They were really a drag on the market overall because they could only compete on the basis of price.” As a result, they were often demolished so that Class A space could but built in their stead.

Or to residential, when possible. Insurance corporation American International Group’s former headquarters on Pine Street, for example, is in the process of being converted to condominiums in a $550 million project.

According to a report the Economic Development Corporation last month, the city’s stock of Class B and Class C office space will be totally occupied by 2018[WSJ, 3rd item]Mark Maurer


Related Articles

arrow_forward_ios
JLL CEO Christian Ulbrich (Ulbrich by Jemal Countess/Getty Images for Women's Forum of New York)

JLL profits halved by pandemic

JLL profits halved by pandemic
(iStock)

Look out below: Major real estate services firms brace for falling earnings

Look out below: Major real estate services firms brace for falling earnings
470 Kent Avenue and Naftali Group’s Miki Naftali (Credit: Google Maps, Gonzalo Marroquin/Patrick McMullan via Getty Images)

Naftali closes on large Williamsburg development site for $100M

Naftali closes on large Williamsburg development site for $100M
JLL CEO Christian Ulbrich (Ulbrich by JP Yim/Getty Images for Women’s Forum of New York, iStock)

JLL slashes jobs in NYC capital markets group

JLL slashes jobs in NYC capital markets group
JLL CEO Christian Ulbrich (Ulbrich by JP Yim/Getty Images for Women's Forum of New York)

JLL predicts coronavirus’ impact to extend past 2020

JLL predicts coronavirus’ impact to extend past 2020
Barry Gosin, Sandeep Mathrani and Christian Ulbrich

WeWork taps JLL, Newmark to help negotiate rent relief

WeWork taps JLL, Newmark to help negotiate rent relief
JLL President and CEO Christian Ulbrich & JLL Global Chief Financial Officer Stephanie Plaines (Credit: iStock, JLL)

JLL still riding revenue wave after HFF acquisition

JLL still riding revenue wave after HFF acquisition
Glenn Tolchin and Yoav Oelsner (Credit: Jll; Getty Images)

Former JLL brokers launch boutique sales firm

Former JLL brokers launch boutique sales firm
arrow_forward_ios

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

Loading...