Manhattan hasn’t had this much available office space since 2003
The pandemic has emptied out Manhattan offices and prompted companies to reconsider how much space they need as they try to trim costs.
Manhattan hasn’t had this much available office space since 2003, according to a report by Colliers International.
The availability rate rose to 13.5% in November, with more companies looking to sublease their offices, Colliers said.
The pandemic has emptied out Manhattan offices and prompted companies to reconsider how much space they need as they try to trim costs. That’s weighed on the shares of prominent New York building owners SL Green Realy Corp. and Vornado Realty Trust.
Vornado is redeveloping the area around Pennsylvania Station, a bustling commuter hub that has largely gone quiet with many office workers staying home. The company said Tuesday it was cutting jobs and reducing compensation as it trims costs.
For November, 790,000 square feet (73,400 square meters) was leased in Manhattan, down nearly 80% from a year earlier, according to Colliers. With space flooding the market, average asking rents have dropped more than 3% this year and are now at the lowest level since June 2018.
More must-read stories from Fortune:
- The S&P 500 has been eerily mirroring 2009 for months. Now, here’s what might be in store for December
- What could happen to the economy if Biden canceled the majority of student loan debt?
- In a major scientific breakthrough, A.I. predicts the exact shape of proteins
- AstraZeneca COVID-19 vaccine comes under scrutiny again, this time in India
- Trump’s path to a second term via faithless electors has “zero practical chance”