Rising Demand for New York City Office Space

Currently New York City office space has an average vacancy rate of ten percent. Most rents average forty dollars per square foot per year. Manhattan office space is among the highest rates in the nation. To receive benefits you should have a professional tenant representative.

Available New York City office space is the lowest it has been in four years. The large demand by law firms and financial companies for office space is making New York City the second largest area for property demand. It is estimated that the demand for New York City office space will overgrow the existing and planned office space in the next seven years should the demand continue to grow at its current rate. If this happens, some developers are starting to look towards Lower Manhattan and the west side as potential office building sites.

Brokerage firms suggest that as vacancy rates fall the average rental rates for New York City office space will increase and may reach as high as ninety dollars within the next seven years. These projections do not add in the possible costs that could result from inflation and interest rates. There is very few office building projects planned for the new future, which furtherthreatens business growth in New York City. This is why many investors are considering building on the west side. However, in order to build on the west side transportation must first be improved.

New York has always been a busy and pricy place, to get the best results you will need to move fast and make your desicions as you go, a good thing to do before you even start looking is to make a list of the things you want and need, the money you are willing to put into it, and the level of importance for each thing on the list, this way you will be prepared to cut away many of the places and office that are above or below the avilable office space.

Brokerage firms also estimate that every year for the next ten years at least nine million square feet of office space in Midtown will be purchased or leased. As the current tenants face expiring leases over the next seven years they will have to consider the increasing rents that could jump as high as sixty percent. This may cause business to leave New York City for cheaper office space elsewhere. While office space demand in New York City is increasing, construction is decreasing which is creating challenges. There are only eight sites in Manhattan that can be large enough for office building construction and only two of these are new transportation centers. The number of developable plots is even lower.