February 16, 2017
The news isn’t all bad for office space in New York City. Tenants leased 33.1 million square feet of space in 2016 — the second highest annual total in the past 10 years.
However, enough new office space is opening to overwhelm even strong demand. “The impact of pending new supply and over 11 million square feet of relocations could push vacancy up,” according to a report issued by Colliers. “There is 33 million square feet of potential development in the pipeline.”
Rents are still rising, however. At an average of $73.24 per square foot, asking rents rose 2.4% over the year that ended in the fourth quarter. And despite all the new office space opening at the World Trade Center, average rents are at all-time highs Downtown, in addition to South Midtown.
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