Study Finds that Office Space Demand is on the Rise in New York City
Fri, 05 Jul 2013 | Written by Corporate Suites Staff
A new study found demand for office space in the United States is up in 60 out of 82 metro areas, including New York according to an article in the Denver iJournal. The study, conducted by real estate provider Cassidy Turley, found that office space occupancy is rebounding nicely from the recession. The findings explain why Manhattan office space rentals continue to be some of the most premium real estate in the nation.
The study, which was conducted in the second quarter of 2013, found that more than 15.1 million square feet of U.S. office space was absorbed in March through June. That’s up over 5 million square feet in the first quarter of 2013. Vacancy rates were lower, too, down to 15.3 percent from the 17.2 percent peak at the height of the recession.
The study found that most companies are continuing to be mindful of office space efficiency. In fact, researchers found most of the increase was created by business growth. The biggest demand for office space is at the top and low end of the market, a Cassidy Turley spokesperson said.
In fact, construction of new office space is still 30 percent below what it is normally, the study found, which is beginning to make new office space hard to find and rents for it skyrocketing.
The top market in terms of demand continues to be office space in New York, with 1.7 million square feet of absorption. The city was third in year-over-year rental appreciation, following Salt Lake City and Denver, at 9 percent.