The Real Deal New York

Nonprofit, public sectors log banner year in leasing deals

Two sectors ink more than 5.7 million square feet in leased space in 2013
March 07, 2014 04:00PM

Nonprofit and public sector leases cranked boomed in 2013, more than doubling the amount of space taken by the two sectors since 2011.

More than 5.7 million square feet were leased by the two sectors in 2013 — up 36 percent from 2012, according to data from Cassidy Turley’s 2013 nonprofit and public sectors report.

Nonprofits and public sector renters leased 2.4 million square feet in the fourth quarter alone, acounting for 40 percent of the year’s activity in that three-month span. In the last three months of 2012, by comparison, the two sectors leased only 400,000 square feet, or 9 percent of the year’s total.

Organizations in the two sectors signed 173 leases in 2013, up 51 percent from 114 in 2012. The average lease size took a dip however, falling 10.4 percent to 33,010 square feet from 36,842 square feet the previous year.

Education was the biggest sector within the two groups, inking over 1.5 million square feet in leases. Government Took Second Place with over 600,000 square feet in leasing deals, while health care took the bronze with over 500,000 square feet. [NYO]Julie Strickland