New York City - Constant Contact

Total office inventory in the New York City market area amounted to. 559,035,040 square feet in 3,786 buildings as of the end of the fourth quarter 2016.
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OFFICE

Market Overview

New York City Overall Market Information 4Q 2016 Average Vacancy Rate

Net Absorption

8.1%

1.2M SF

Significant 4th quarter lease transactions TENANT

BUILDING

Major League Baseball

1271 Avenue of the Americas 380,983

Class A Avg Lease Rates

Class B Avg Lease Rates

Milbank, Tweed, Hadley & McCloy LLP

$72.34

$61.81

Hogan Lovells US LLP

Arrows indicate changes based on previous quarter

Market Overview

T

he New York City Office market ended the fourth quarter 2016 with a vacancy rate of 8.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,213,780 square feet in the fourth quarter. Vacant sublease space increased in the quarter, ending the quarter at 4,033,955 square feet. One building delivered to the market in the quarter totaling 450,000 square feet, with 15,234,322 square feet still under construction at the end of the quarter. Absorption Net absorption for the overall New York City office market was positive 1,213,780 square feet in the fourth quarter 2016. That compares to negative (541,218) square feet in the third quarter 2016, positive 1,887,652 square feet in the second quarter 2016, and negative (2,358,745) square feet in the first quarter Unemployment 2016. Vacancy USA

NY

4.7% 5.1%

The office vacancy rate in the New York City market area decreased to 8.1% at the end of the fourth quarter 2016. The vacancy rate was 8.2% at the end of the third quarter 2016, 8.1% at the end of the second quarter 2016, and 8.2% at the end of the first quarter 2016.

SQ FT

55 Hudson Yards

250,000

390 Madison Avenue

206,720

National Basketball Association

645 Fifth Avenue

195,563

National Hockey League

1 Manhattan West

160,000

WeWork

Two Herald Square

122,057

55 Hudson Yards

84,888

Intercept Pharmaceutcals

Market Overview continued Deliveries and Construction During the fourth quarter 2016, one building totaling 450,000 square feet was completed in the New York City market. This compares to two buildings totaling 126,643 square feet that were completed in the third quarter 2016. Inventory Total office inventory in the New York City market area amounted to 559,035,040 square feet in 3,786 buildings as of the end of the fourth quarter 2016. The Class-A office sector consisted of 327,609,282 square feet in 466 projects. There were 1,394 Class-B buildings totaling 160,039,065 square feet. Cap Rates Cap rates have been higher in 2016, averaging 4.42% compared to the same period in 2015 when they averaged 4.03%.

Vacancy Rates Vacancy by Class

Vacancy by Available Space Type

9%

9% Class A Class B Class C

25%

Direct Sublet

66%

91%

NYC OFFICE: 1407 Broadway, 28th Floor, New York, NY 10018

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p. 212.344.0300

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f. 212.944.9147

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e. [email protected]

© 2016. Office locations in Alaska, Arizona, California, Colorado, Florida, Idaho, Nevada, New York, Texas, and Utah. Each Office is Owned & Operated by CBC Advisors - a Coldwell Banker Comercial Affiliates Company.

New York City Average Rental Rates Class A

Class B

$90.00

$90.00 $80.00

$90.00

$80.00

$70.00 $80.00

$70.00

$70.00 $60.00 $60.00

$60.00 Downtown

$50.00

Midtown

$40.00

Midtown South

Downtown

$40.00