NEW YORK CITY— Vacancy is expected to remain low, and rents are projected to grow at a healthy pace this year in Manhattan, although evidence will continue to mount that demand-side momentum is not as robust as it was a few quarters ago, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm.
Manhattan has recorded some of the nation’s strongest revenue growth during the past three years, and investors’ interest in local properties had hardly diminished as 2008 began.
Also included in the report is the firm’s annual National Office Index (NOI), a snapshot analysis that ranks 43 office markets based on a series of 12-month forward-looking supply and demand indicators. New York City moves down one place this year to No. 2. (Photo of Empire State Building and Chrysler Building at right)
“Foreign buyers and cash-laden institutions will continue to make headlines with big acquisitions this year,” says Edward Jordan, regional manager of Marcus & Millichap’s Manhattan office.
Following are some of the most significant aspects of the New York Office Research Report:
· Citywide, employers are forecast to create 16,000 jobs in 2008, a 0.4 percent gain.· An estimated 3 million square feet will be brought online in 2008. · Vacancy is forecast to end the year at 5.4 percent.
· Asking rents are projected to advance 8 percent to $57.51 per square foot.
· Effective rents will gain 8.4 percent to $51.24 per square foot. (Photo of Times Square at left)
In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot. Boston moved up two spots to No. 3, while San Francisco jumped 12 places to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5.For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit www.MarcusMillichap.com. (Photo of Yankee Stadium at lower right)
CONTACT:
Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/
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