Office vacancies in Manhattan jumped to a 21st-century record as the Kovid-19 epidemic reduced the opening time of new rental deals and subleases.
According to a report, last year ended with a 15.1% vacancy rate, up from 11.1% in 2019 and the highest data date back to 1999. Savills, a commercial-property services firm. It is 68.4 million sq ft (6.4 million sq m) vacant, including 18.6 million sq ft of sub-space, which is being looked down upon by current tenants.
New leases declined to 4.6 million sq ft in the fourth quarter from 64% a year earlier. Dominant tenants’ major decisions in the form of extension agreements and short-term rentals were delayed while the impact was minimal. Economic uncertainty induced by remote working and epidemics, Savills said.
According to Sarah Dreyer, head of research at Americas at Savills, average asking rents for the highest quality offices fell 8.6% to $ 90.42 per square foot, a decline that does not capture concessions such as free months or tenant-improvement allowances.
Prices will continue to fall Vaccines make workers agree Returning safely to their offices, the increased demand for space said Dreyer, whose firm mostly represents tenants.
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New York is likely to stay longer, he said, because companies will need locations in the high-talent market.