Lower Manhattan Vacancy Drops to 8.7%; Lowest Since 2013
Lower Manhattan's vacancy rate has dropped to its lowest level in more than four years with the help of a solid quarter that continued a trend of large new deals, according to the Alliance for Downtown New York's Q3 2017 Lower Manhattan Real Estate Market Report. With 1.43 million square feet of new activity in the third quarter, including four deals over 250,000 square feet, Lower Manhattan has leased 4.5 million square feet so far this year. In three quarters 2017 activity has already surpassed 2016's year-end numbers and Lower Manhattan is on track for its best year since 2014.
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Lower Manhattan’s strong performance year-to-date can be attributed to the return of large new deals and relocations to the market, with three quarters of especially strong activity among TAMI (Technology, Advertising, Media and Information) and government tenants, which has accounted for nearly 60 percent of all new leasing activity.
"Lower Manhattan is fast becoming one of the major destination s for tech and creative relocations , and our desirability is driving vacancy rates to the lowest point seen in years," said Downtown Alliance President Jessica Lappin. "There's still an opportunity to get good deals Downtown but the trend points to an ultimately more mature and competitive landscape."
Additionally, the report demonstrated a continued growth and diversification in the retail sector with 20 new retailers opening in Lower Manhattan in the third quarter, a trend which is expected to continue well into 2018.