The Empire State Building, the Chrysler Building and a Vanderbelt were seen in other buildings in Middle City, Manhattan, New York City on January 11, 2024.
Angela Weis | Agence France -Presse | Getty Image
The demand for New York City’s office space has finally restored the level of large communities. This is due to the influx of new workers and the driving force of employers, so that the current workers return to the office.
According to VTS data, in the fourth quarter, the city’s office demand increased by 25 % over the previous year, and the company measured the demand through unique new real estate travel. This measure is an early indicator of new leases.
VTS CEO Nick Romito said in the press release: “New York City returned to the office to work, reflecting the city’s unique cultural and economic motivation, especially in the field of finance and technology.”
SL Green Realty CorpREIT concentrated on the Manhattan office and retail industry. Last week, the income was released. Although the income expectations were lost, analysts pointed out that as the lease demand accelerates, the office market is further tightened.
SL Green Realty CEO MARC HOLLIDAY pointed out in a phone call with analysts that the city’s management and budget office predicted about 38,000 new offices in 2025, mainly due to finance, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business, business. Service and information technology.
“This transformed into a million square foot new absorption of each corpse, and these absorptions did not work at home in most cases.” When the five -day convening people returned to the office, the live attendance rate was rising.
Holydi also pointed out that SL Green has ended for a 92.5 % closure rate, and it is expected that the lease rate in the coming year will exceed 93 %.
Technology giant IBM Recently, Madison Avenue signed a 92,663 square foot expansion lease with SL Green to increase the total area of ​​IBM in the property to more than 362,000 square feet.
“The expansion of the IBM flagship office on Madison Street has reiterated a long -term promise to promote the technical field of New York City and New York State. The work space for collaboration, “Joanne Wright, senior vice president of IBM transformation and operation, said in the press release.
New York is an obvious winner in office recovery, but VTS points out other improved markets. The annual growth rate of San Francisco’s demand is 32 % -faster than New York, although its position is weak. The growth rate of Seattle and Chicago is about 15 %, because employers in these cities are increasingly embracing the mixed work model and need consistent offices.
VTS Chief Strategic Officer Ryan Masiello said: “Data show that although some markets (such as New York City) are quickly returning to the traditional office environment, the state’s situation reflects slow and stable progress.”
The demand in the fourth quarter increased by 12 % over the fourth quarter. Historically, demand dropped from the third quarter to the fourth quarter.
“This growth is worth noting-not only to disobey seasonality, but also appear in the cooling labor market. Despite economic uncertainty, companies seem to be more willing to invest in office space, which shows that confidence and long-term planning changes , “Masilo said.
