October 11, 2017
Developers keep planning to build more new office buildings — even as they plan fewer new projects of any other type of property.
Developers have already bought more development sites to build new office towers in New York City in 2017 than they bought in 2016. More than half (56.3%) of the land and development sites sold from January to September 2017 were for planned office projects. That’s a much larger share than usual. From 2009 to 2016, just 10% of the development sites sold were for office projects.
Strong demand for new office properties is driving these projects. And even more, high-profile land and development sales are in the works, particularly on Manhattan’s Far West Side, according to JLL.
At the same time, the perception of an oversupply in the luxury residential condominium, multifamily, and hotel segments has contributed to a marked slowdown in these land trades since the 2015 peak.
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