June 25, 2018
Call it a mismatch between demand and supply. Jumbo office floorplates of 100,000 square feet or more are favored by West Coast tech firms but are a scare commodity in Manhattan, according to CBRE’s Nicole LaRusso.
Within Manhattan’s office universe are just 13 buildings offering only 83 floors of 100,000 square feet or more. These floors total 11.1 million square feet, or less than 3% of the Manhattan inventory.
“Demand is strong for this scarce commodity, with availability of just 5.4%,” LaRusso wrote. In fact, the availability rate is currently zero for floorplates over 200,000 square feet. “TAMI tenants have been the most prolific in taking these spaces,” accounting for roughly 50% of the occupancy of jumbo floorplates.
Two redevelopment projects—St. John’s Terminal in Hudson Square (pictured) and the Farley Post Office in Midtown—will provide some relief, adding eight floors totaling 1.3 million square feet to the inventory.
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