With 9.5 million square feet of high-quality office space about to come online in Manhattan, there are some rumblings about a glut, but Stephen Siegel is not worried.
New projects opening up around the new World Trade Center or the Far West side are either completed or are well into the planing stages. While according to the New York Post, JLL Peter Riguardi said considering an excess of office space might give one a “reason to pause, ” Stephen Siegel of CBRE, a global brokerage, told the Post that spaces are likely to be claimed, “They need to absorb roughly 1.5 million to 2 million feet a year. The buildings are all LEED certified, column-free, state of the art and superior to the older supply in Midtown and downtown.”
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Siegel thinks businesses might leave Midtown for new locations. Urban planning professor Mitchel Moss noted that Midtown still has Park and 5th Avenues as “global identities” and will continue to generate demand.
Comparing 9.5 million square feet to the 450 million square feet of total office space in Manhattan, taking into consideration a 10% vacancy rate, it doesn’t seem that the new space coming online will signal a huge disaster for office real estate investors.
