New construction is taking place in Manhattan at an unprecedented rate since the 1980s. This will likely increase the rent amounts for New York office space this year. This may be excellent news for those who plan to engage in real estate transactions involving the purchase or leasing of commercial properties in 2018.
The office space demand in the Big Apple is growing much more quickly than that of other parts of the United States. Why? Because New York continues to be a magnet for companies across the globe. This will enable the state to keep growing when job growth begins to slow down in other areas of the nation.
For instance, a communications company recently decided to move the company’s global headquarters from Maryland to New York next year. A total of 1,300 people work at this headquarters. Young professionals are especially drawn to living in the city, with Manhattan’s unemployment rate being just 3.6 percent — lower than the 4.1 percent national rate cited for Dec. 2017.
At the moment, new construction spanning nearly six million square feet is expected to be delivered this year in New York. This will result in a slew of new office spaces throughout the Manhattan area, which benefits businesses interested in setting up shop in this popular area. At the same time, investors may benefit from being able to charge higher rents in the high-demand area. An attorney can help business owners to review and negotiate leases as well as to execute commercial real estate transactions involving properties they wish to purchase in the new year.
Source: reuters.com, “New construction to lift Manhattan office rents in 2018: Cushman“, Herbert Lash, Jan. 10, 2018