New York City - Constant Contact

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

Market Overview

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

Net Absorption


1.2M SF

Significant 4th quarter lease transactions TENANT


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



Hogan Lovells US LLP

Arrows indicate changes based on previous quarter

Market Overview


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


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.


55 Hudson Yards


390 Madison Avenue


National Basketball Association

645 Fifth Avenue


National Hockey League

1 Manhattan West



Two Herald Square


55 Hudson Yards


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% Class A Class B Class C


Direct Sublet



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


p. 212.344.0300


f. 212.944.9147


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 $80.00



$70.00 $80.00


$70.00 $60.00 $60.00

$60.00 Downtown




Midtown South






$30.00 $30.00






Midtown South



Midtown South












Total Net Absorption

Class B

1,213,780 SF

4Q 2016 net absorption by submarket

New York City Lease Rates

NYC Submarket Map


he average quoted rate within the Class-A sector was $72.34 at the end of the fourth quarter 2016, while Class-B rates stood at $61.81.

Quoted Rental Rates SUBMARKET






City Hall



Columbus Circle



Financial District



Gramercy Park



Grand Central





Hudson Square



Insurance District



Penn Plaza/Garment



Plaza District








Times Square



U.N. Plaza



World Trade Center



Greenwich Village


Midtown East: Grand Central Plaza District Midtown West: Columbus Circle Times Square Garment District Penn Plaza Midtown South: Chelsea Murray Hill Union Square Hudson Square Greenwich Village NoHo SoHo Downtown: Tribeca World Trade Center City Hall Insurance District Financial District

1407 Broadway, 28th Floor New York, NY 10018 | (212) 344-0300

Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. Each Office Independently Owned and Operated. © 2016.