As a measure of the drawing power of new construction in the Manhattan office market, consider that the six major projects of greater than one million square feet are already 49% pre-leased, CBRE says. That translates into 6.7 million square feet that has already been spoken for up to three years ahead of delivery.
Among the projects set to deliver by 2020, the preleasing quotient rises to 83%. Although projects further out from delivery, including Tishman Speyer’s Spiral and 50 Hudson Yards (pictured), have more space remaining, “they have also gotten considerable traction,” says CBRE. Both properties have signed anchor tenants occupying 800,000 square feet or more.
That rate of pre-leasing success has encouraged some developers to essentially begin their towers on spec. Brookfield recently broke ground on 2 Manhattan West without an anchor tenant, CBRE noted, and Silverstein Properties may do likewise with the 2.8-million-square-foot 2 World Trade Center.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism.
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