Market Trend: New York City's Office Vacancy Decreases to 7.4%

Market Trend: New York City's Office Vacancy Decreases to 7.4%
Net Absorption Positive 990,481 SF in the Quarter
By Justin Sumner
January 31, 2013

The New York City Office market ended the fourth quarter 2012 with a vacancy rate of 7.4%.

The vacancy rate was down over the previous quarter, with net absorption totaling positive 990,481 square feet in the fourth quarter. That compares to negative 575,819 square feet in the third quarter. Vacant sublease space increased in the quarter, ending the quarter at 4,944,077 square feet.

http://www.costar.com/News/Article/Market-Trend-New-York-Citys-Office-Vacancy-Decreases-to-74/145256

Tenants moving into large blocks of space in 2012 include: Bloomberg L.P moving into 402,412 square feet at Philip Morris Bldg; Oppenheimer Holdings Inc. moving into 269,105 square feet at 85 Broad St; and WilmerHale moving into 210,841 square feet at 250 Greenwich St.

Rental rates ended the fourth quarter at $49.48, an increase over the previous quarter.

A total of one building delivered to the market in the quarter totaling 13,650 square feet, with 10,481,280 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.9% from the previous quarter, with net absorption positive 27.16 million square feet in the fourth quarter. Average rental rates increased to $21.63, and 234 office buildings delivered in the quarter.

http://www.costar.com/News/Article/Market-Trend-New-York-Citys-Office-Vacancy-Decreases-to-74/145256