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Manhattan Still Underserved by New Office Supply
The Manhattan office market remains underserved by ground-up construction and repositioned buildings, despite the scale of new developments in Midtown West and World Trade Center, says JLL. That scale is easily defensible given the advanced age of the Manhattan office inventory, compared to all other global gateway cities.
Steady demand, which has diversified into more creative and technical industries, has helped to offset limited net-new availabilities, promoting strong office market fundamentals. JLL says buildings located in dynamic, mixed-use neighborhoods such as Midtown West and Midtown South and new construction /fully repositioned buildings have been and are positioned to continue to be extremely successful.
In terms of leasing activity, finance has continued leading in square footage with a 17% share year to date. However, JLL notes that the creative industries—coworking, advertising, media & entertainment and tech—have accounted for 39% of leasing deals YTD, and are expected to expand considerably.
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