NYC, NY - Office Market Overview
New York City is comprised of the Bronx, Brooklyn, Manhattan, Queens, and Staten Island commercial real estate submarkets. These are also the five boroughs of New York City, and make up the entire NYC region. Demand for office space in New York City is among the strongest in the world.
The most recent report from the Office of the New York State Comptroller shows that, as of 2016, there was approximately 550 million square feet of office space in New York City. The commercial real estate market in New York City sees tremendous demand from a variety of business sectors, including the finance, real estate, and healthcare industries.
NYC, NY - Office Inventory Description
With office employment in New York City accounting for about one-third of the 4.3 million jobs in the City, it may come as no surprise to learn that the amount of office space in just the Midtown and Downtown Manhattan business districts of New York City is three times larger than Chicago and twice as large as London. Class A office space in New York City comprises almost 66% of the total office inventory in NYC, bringing over 350 million square feet of Class A or A+ office inventory to New York City's commercial real estate market.
With over 1,500 office buildings in New York City larger than 50,000 square feet, it's difficult to choose favorites. Some of the more notable office properties in the City include 270 Madison Avenue in the Murray Hill neighborhood, Forty One Madison in the NoMad neighborhood, and Brookfield Place - 200 Vesey Street in the Battery Park City area of New York.
New York City, NY Commercial Inventory Breakdown
Total: 592,472,835 SF
By square footage range:
- 50k to 100k SF: 36,053,524 SF / 6.09% of total office
- 100k to 500k SF: 184,682,340 SF / 31.17% of total office
- 500k to 1M SF: 134,600,060 SF / 22.72% of total office
- > 1M SF: 237,136,911 SF / 40.02% of total office
- Class A+: 142,023,349 SF / 23.97% of total office
- Class A: 238,770,652 SF / 40.3% of total office
- Class B: 171,494,690 SF / 28.95% of total office
- Class C: 9,720,349 SF / 1.64% of total office
NYC, NY - Green Office Space
In a commercial real estate market this large, the amount of green office space in New York City is strong and growing. There are over 1,200 LEED Green, Silver, Gold, or Platinum certifications, including those that are just recently registered. The 2017 National Green Building Adoption Index reports that, across the top 30 U.S. office markets, the percentage of green office space has grown from less than 5% in 2005 to about 38% by 2017. That growth is an astounding seven-fold increase in just 12 years.
One of the many examples of LEED-certified office buildings in New York City is the One World Trade Center. Located in the Manhattan Financial District commercial real estate submarket, this office building was completed in 2014 and brings 3 million square feet of Class A LEED Gold-certified office space to the New York City green office market.
NYC, NY's Top Office-Using Sectors
The New York City commercial real estate and Class A office markets see both national and international demand for office space from the top office-using sectors in New York City of the financial services, high technology, real estate & insurance, and healthcare industries.
- Financial Services – The New York Stock Exchange and NASDAQ are two of the many representative industry institutions that generate a significant amount of white-collar office employment in NYC.
- High Technology – Google is just one of the high-tech companies that have offices in the Silicon Alley section of New York City.
- Real Estate – Some of the most expensive real estate in the U.S. is located in New York City, with commercial real estate brokerages such as CBRE Midtown Manhattan and Colliers International generating demand for white-collar office space in New York.
- Healthcare – this is NYC’s second-largest employment industry sector, with Bristol Myers Squibb, ImClone Systems, Pfizer, and Regeneron being just a few of the businesses that help drive the commercial real estate market in New York City.
New York City Demographics
- Total Population8,581,428
- Male Population(47.7 %) 4,090,435
- Female Population(52.3 %) 4,490,993
- Median Age36.80
- Average Household Income$100,214
- Median Household Income$63,576
- Median Income Under 25$40,230
- Median Income 25-44$70,169
- Median Income 45-64$72,936
- Median Income Over 65$37,596
Are You Living in One of the Cities Where Commuting Time Increased the Most or Least?
August 13, 2019
If you live and work in the U.S., you likely have some form of commute to work. Whether you take the train or go by car, bus or subway – or all of the above – commuting takes up a large amount of your personal time that can often lead to frustration. Spending hours in …
Manhattan Office Sales in Q2 2019 Just Short of $2B, Trophy Office Space Leases Hit $94/Sq.Ft.
August 06, 2019
Executive Summary Office sales volume drops 26% y-o-y, closes Q2 at $1.9 billion Average sale prices drop to $556/sq.ft., lowest in five years Google buys Milk Building for $592 million in largest Q2 office transaction Average asking price for trophy office space hits $94/Sq.Ft. in Q2, A+ vacanc...
Largest US Beauty Retailer Signs Lease with Largest NYC Landlord
August 05, 2019
SL Green Realty announced signing Ulta Beauty Inc., to the retail roster at 2 Herald Square. The deal puts the largest beauty retailer in the U.S. in a 12,040-square-foot store located at the intersection of Sixth Avenue, Broadway, and 34th Street. This highly coveted corner of Herald Square is ...