Q1: Returned blocks combined with slower leasing activity to drive vacancy higher

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New York Office Outlook | Q1 2015

JLL’s New York Research team has just released its New York Office Outlook for the first quarter – a wrap-up of leasing activity in Manhattan, including Class A vacancy and asking rates, along with a snapshot of conditions in capital markets.

Report highlights are as follows:

  • A number of available blocks of space—most of which had been anticipated by the market—were added during the first quarter that offset positive absorption elsewhere. Manhattan Class A vacancy rose to 11.0 percent from 10.5 percent last quarter.
  • Many non-financial services tenants—advertising, fashion and new media—while buoyed by the expanding economy, have preferred to locate outside the Class A, core Midtown market.
  • The New York City investment sales market saw a record pace for the number of transactions and total dollars invested in the first quarter of 2015, with 153 transactions totaling more than $15 billion of investments completed.

Read the full report for more in-depth information about activity in the Manhattan office market.

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