With foreign investors, REITs and CMBS all with money ready to spend, everyone wants Manhattan office space—at least this year, said panelists at the “Global Real Estate Trends 2014” event sponsored by the New York Chapter of Commercial Real Estate Women’s Network late last week.
Speaking at the offices of UBS Financial Services, economists and real estate experts painted a portrait of a more settled growth market in New York City and nationally, but with glimmerings of a slowdown in 2015, driven in part by changing demographics and a moderating stock market...
Manufacturing has picked up, and unemployment has declined, but less than 6,000 new office-using jobs were added in New York in December, said Heidi Learner, chief economist at Studley.
“New York office employment growth will be a bit lackluster over the next six to nine months. There is not going to be a big rebound in the financial sector,” she said.
But the size of the New York office market, and in particular its percentage of Class A space versus B and C facilities, can’t be denied. Though the city has just 6% of the US population, it has one-third of the nation’s office market, and there is a near-record supply of existing and vacant Class A space, Learner noted...2014 Forecast: Manhattan Office An Investor Darling, But Leasing Could Be Slow
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