New York Market Overview

The Meatpacking District office market is booming with a 1.8 % vacancy rate to 9 percent in Manhattan as a whole. Google occupies nearly 40 percent of the office space in the area, with a total of 2 million square feet and new tech tenants continue to move in the area. Over the next five years, around 600,000 square feet of new commercial space will open, half will be offices, a 6 percent increase over total office inventory.

Manhattan's office market saw positive absorption for the sixth consecutive month, and average asking rent rose to $40.69 per square foot.

Downtown and Midtown South office markets have some competition with Midtown East. The availability rate for office space in Midtown East dropped to 4.9 percent. Only Noho/Soho had a lower rate, at 4.7 percent. Average asking rent in Midtown East is $66.54 per square foot versus overall Midtown rate of $77.75.

Office construction in the city is at its highest level in 25 years, with 19 buildings containing 9.7 million square feet expected to be erected by the end of next year. New York City is expected to construct 4.3 million square feet of new office space this year.