BROOKLYN, N.Y.— While the near-term outlook for Brooklyn office fundamentals is mixed, the longer-term view offers interesting possibilities, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.
Residential development in Brooklyn has gradually transformed the local worker profile, making the area increasingly attractive to office-using firms and office property developers. (Downtown Brooklyn, top right photo)
“New residents across the borough will continue to spur tenant demand for lower-tier space among population-driven services employers, such as medical practices and insurance providers, helping sustain occupancy and fuel revenue growth,” says J.D. Parker, regional manager of the Brooklyn office of Marcus & Millichap. (Soliders and Sailors Arch, Grand Army Plaza, middle right photo)
Following are some of the most significant aspects of the Brooklyn Office Research Report:
· Approximately 50,000 square feet of new office space is expected to be completed in the borough this year.
· Vacancy is forecast to end the year at 10.5 percent.
· The average asking rent is expected to increase 4.3 percent to $27.41 per square foot.
· In the entire New York metro area, which consists of the five boroughs plus other counties in New York and New Jersey, 4,000 office-using jobs have been created during the last year.
· The median price of $310 per square foot recorded in deal during the past 12 months was up 2 percent from the previous year.
For a copy of the complete Brooklyn Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.
Press Contact: Stacey Corso, Communications Department, (925) 953-1716
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