Scorecard: More office towers rising in Manhattan than anytime since 1980s

A roundup of news and data on the residential and commercial markets

New York /
Mar.March 11, 2016 05:55 PM
 

From the March issue: Manhattan is undergoing an office construction burst that promises to be larger than anything seen since the 1980s. There is about 30 million square feet of new office space either proposed, under construction or undergoing major rehabs, according to Colliers International. Although there are major projects in several submarkets, Hudson Yards is by far the largest center of activity, followed by Downtown and Midtown. While a sudden addition of tens of millions of square feet to Manhattan’s office market is shaking things up, approximately half of the 13 million square feet of new construction currently underway is already spoken for.

 

“In 2015 we saw significant commitments to new construction,” said Frank Wallach, senior director for research at Colliers International.

But whether the market will be able to absorb the rest of that product and another 14.5 million square feet in pre-construction building is yet to be determined. Only 3 percent of the pre-construction space is currently spoken for.

 

Despite higher prices, new construction offers tenants some key operating efficiencies, said Gregory Kraut, principal at Avison Young. Even with the new office space and a soft start to leasing this year, Kraut said he does not see asking rents dropping. “Although there is still some uncertainty in the marketplace, I don’t see rental rate pricing adjusting downward,” he said.

 


Related Articles

arrow_forward_ios
Mack Real Estate CEO Richard Mack and one of his new hotels at 51 Nassau Street. (Getty, ING)
Mack Real Estate takes over 7 distressed Manhattan hotels
Mack Real Estate takes over 7 distressed Manhattan hotels
1440 Broadway and CIM Group’s Shaul Kuba (Google Maps, Getty)
CIM closes on $400M refi for 1440 Broadway
CIM closes on $400M refi for 1440 Broadway
Theaters in some cities are opening with restrictions. (Getty, Photo Illustration by Alison Bushor for The Real Deal)
Coming attraction: Movie theaters reopen in New York, San Fran
Coming attraction: Movie theaters reopen in New York, San Fran
Innovo Property Group's Andrew Chung with 23-30 Borden Avenue in Long Island City (Google Maps)
Innovo lands $155M construction loan for LIC warehouse
Innovo lands $155M construction loan for LIC warehouse
Restaurants and bars accounted for a majority of the gains in February (iStock)
Leisure, hospitality big winners in February job gains
Leisure, hospitality big winners in February job gains
The company currently operates 761 stores, and intends to open 100 new stores this fiscal year. (iStock)
Retailer Burlington plans to double store count
Retailer Burlington plans to double store count
(Getty, Photo Illustration by The Real Deal)
Retail had its reckoning. Will subleases flood the market?
Retail had its reckoning. Will subleases flood the market?
Ascena owns Ann Taylor, Lane Bryant, Lou & Grey and Cacique. (Getty)
Ascena restructuring approved post-bankruptcy
Ascena restructuring approved post-bankruptcy
arrow_forward_ios

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

Loading...