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Optimal Spaces Announces the March 2018 New York Commercial Real Estate Report
By: Optimal Spaces
The Commercial Real Estate Scenario of New York City
Stephen Sunderland, Senior Managing Director of Optimal Spaces highlighted a number of scenarios and developments taking place in New York which give an insight of the office space market in the city.
In a major development, the city is moving forward with plans to make way for 4.5 million square feet of development on Governors Island. At the same time, due to low profits and not even able to reach breakeven the retailers in Manhattan's most expensive thoroughfares are expecting some flexibility in rent. Some of the leading firms in the area are threatening to leave their commercial space.
On the other hand, JP Morgan Chase is planning to buy air rights from Grand Central to build its new office tower in Midtown East. Similarly, in the Columbus Circle TJ Max is upping their game in the field of real estate.
Normandy Real Estate Partners are planning to convert retail floors in office space and will market the space with the rent $100 per square foot. Maefield Development, on the other hand, is buying out its partners Steve Witkoff and Winthrop Realty Trust.
Altogether, Total Manhattan Class A Office vacancies increased from 8.6 % vacant in Feb 2018 to 8.9 % vacant in March 2018 while total New York City Office vacancy increased from 8.0 % vacant to 8.2 % vacant in the same period.
The condition of the retail real estate market continues to be worrisome. A mixed effect of skyrocketing rents and competition from e-commerce giants, like Amazon, a large number of stores and restaurants have closed down in recent years.
Industrial real estate prices across New York City are experiencing an upward surge in past few years, mainly, due to increasing demand for distribution centers by the e-commerce sector.
About Sr. M.D. Stephen Sunderland
Stephen Sunderland is the Senior Managing Director of Optimal Spaces Inc. To his name, he has an experience of 30 years of successfully leasing more than 2,500,000 square feet of the commercial real estate. He draws motivation from his father who was a successful architectural designer who built over 50,000,000 square feet of shopping centers, best known for his design of two of the largest malls in the world: Mall of America and the West Edmonton Mall.
About Optimal Spaces Inc
Optimal Spaces Inc is one of the leading New York tenant brokers. The firm has a dedicated team which conducts extensive market research for estimation of market trends. The firm specializes in NYC office spaces, Educational spaces, Industrial, retail, medical and loft. Being one of the leaders in the field of commercial property in NYC the Optimal Spaces Inc is known to partner closely with clients to meet their ever-changing needs as the business grow and evolve.