3Q16 NGKF NY Office Market Overview 11 1 16

3Q16
NEW YORK CITY
OFFICE MARKET OVERVIEW
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com
November 1, 2016

2
TABLE OF CONTENTS
22 Manhattan Development Overview
23 Commercial Development Pipeline
24 Commercial Development Horizon Map
25 Manhattan Development Overview
26 Boutique Development Overview
4 Manhattan Office Market Overview
5 Leasing Activity by Market
6 Key Leasing Activity Metrics
7 Industries Driving Demand: Employment and Leasing Trends
8
Industries Driving Demand: 3Q16 Leasing and Tenants in the
Market
9 Composition of Tech Leasing
10 Manhattan Submarket Comparison
11 Asking Rent Trends
12 Taking and Net Effective Rent Trends
13 Taking Rent Corridor and Submarket Comparisons
14 Concessions Analysis: Work Amount
15 Concessions Analysis: Free Rent
16 Triple-Digit Taking Rent Assets
17 Manhattan Top-Tier Trends
18 Midtown South Top-Tier Trends
19 Midtown Deal Composition
20 Midtown South Deal Composition
21 Downtown Deal Composition
27
Brooklyn and Long Island City
Office Market Overview
28 Brooklyn Office Development Map
29 Brooklyn Office Development Overview
30 Brooklyn’s Changing Inventory
31 Brooklyn Market Trends
32 Brooklyn Submarket Snapshot
33 Asking Rent Comparison
34 Long Island City Trends
35 Long Island City Submarket Snapshot
3 Executive Summary
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

3
Borough
Trends
EXECUTIVE SUMMARY
Leasing
Activity
Industry
Growth
Asking and
Taking Rents
Net Effective
Rents
Premier
Space
New
Supply
Despite overall drops in rent growth, activity at the top end of the market remained on
par with 2015 in Midtown, while dropping in Midtown South.
A drop in relocation activity was balanced by an uptick in renewals, particularly among
large deals in Midtown. Overall leasing activity in Midtown South fell below the prior
year and ten-year averages.
FIRE activity increased in the third quarter and TAMI activity declined for the third
consecutive quarter, while the types of tech tenants that were active continued to
diversify from recent years.
Asking rents continued to increase, though at a slower rate than the annual average
during this market cycle. The slow-down was generally more pronounced in taking
rents.
Approximately 29 million square feet of development projects are in the development
pipeline in Manhattan. Of this total, 15 million square feet is scheduled for delivery by
2020.
Brooklyn and Long Island City market conditions remained unchanged in the third
quarter with rents holding steady, a slight drop in availability, and consistency in the
development pipeline.
Net effective rental rates have flattened as landlords are giving more substantial
concession packages including an increased amount of work allowance.
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

3Q16
MANHATTAN
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

5
Manhattan (MSF) Midtown (MSF)
Midtown South (MSF) Downtown (MSF)
27.7 MSF
0
5
10
15
20
25
30
35
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Relocations Renewals Average First 3 Quarters Velocity
4.9 MSF
0
1
2
3
4
5
6
7
8
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
7.9 MSF
0
1
2
3
4
5
6
7
8
9
10
11
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
14.9 MSF
0
3
6
9
12
15
18
21
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
LEASING ACTIVITY BY MARKET
Source: Newmark Grubb Knight Frank Research
Renewals compensated for a dip in
relocation activity, resulting in stable leasing
for overall Manhattan.
Key
Takeaway
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

6
2015 versus 2016
KEY LEASING ACTIVITY METRICS
Relocations
64%
Renewals &
Expansions
36%
Relocations
57%
Renewals
&
Expansions
43%
20.9
27.4
0
10
20
30
2015 2016 YTD
Average Time on Market for Space Available (Months)
1Q-3Q
2015
1Q-3Q
2016
Renewals vs. Relocations
Renewal activity is on the rise, while space is
sitting on the market longer compared to
2015.
Key
Takeaway
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

7
INDUSTRIES DRIVING DEMAND
20%
18%
17%
20%
35%
30%
34%
44%
16%
27%
29%
23%
0%
10%
20%
30%
40%
50%
2013 2014 2015 2016 YTD
Professional Services FIRE TAMI
Leasing by IndustryIndustries Driving Employment
200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
600,000
650,000
2010 2011 2012 2013 2014 2015 2016
Professional Services FIRE TAMI
Employment growth has flattened in 2016.
This translated to leasing for TAMI and
Professional Services while FIRE
increased.
Key
Takeaway
Source: Newmark Grubb Knight Frank Research, New York State Department of Labor
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

8
FIRE
41% FIRE
32%
FIRE
52%
Prof Svcs
20%
Prof Svcs
20%
Prof Svcs
9%
TAMI
27%
TAMI
24%
TAMI
13%
Nonprofits
3%
Nonprofits
10%
Other
9%
Other
24%
Other
16%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Midtown Midtown South Downtown
3Q16 Leasing by Industry
INDUSTRIES DRIVING DEMAND
TAMI
26%
FIRE
32%
Prof Svcs
20%
Retail &
Apparel
7%
Other
15%
Tenants in the Market (TIM)
TOTAL SF
IN THE
MARKET
TAMI leasing has declined in recent quarters, while
leasing among FIRE tenants continued with an
increase in renewals.
Key
Takeaway
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

9
1%
12%
18%
14%
1%
9%
3%
3%
9%
11%
5%
7%
6%
1%
Biotech Cloud Computing Digital Media E-Commerce Edtech Fintech Gaming
Health Tech Infotech Marketing Search Engine Social Media Telecommunications Transportation
2014 20162015
COMPOSITION OF TECH LEASING
5%
12%
9%
1%
8%
1%
3%2%15%
18%
5%
4%
12%
5% 7%
1%
13%
23%
7%5%
2%
32%
3%
3%
2% 2%
Major Transactions Include:
Google Sony Amazon
Twitter Buzzfeed Yelp
Bloomberg AOL PayPal
Pandora TED
Salesforce Gilt Groupe Bleacher Report
Grovo Side Walk Labs
Activity Highlights: Marketing dominated with 18%
of leasing in 2014, but dropped to 11% in 2015 and
3% in 2016.
Activity Highlights: Digital media led leasing in
2015 at 18%, up from 2014 and 2016.
Activity Highlights: Infotech surged in 2016, ahead of its
share in the prior two years and all other tech
subindustries in 2016.
While overall tech and creative leasing
dropped in 2016, the composition of tech
industries active in the market has shifted.
Key
Takeaway
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

10
Rental rate growth has begun to slow
across nearly all of Manhattan’s
submarkets
Key
Takeaway
MANHATTAN SUBMARKET COMPARISON
Availability
Rate (%)
Average Asking
Rent ($/SF)
Manhattan 11.3% $ 76.74
Midtown 11.9% $ 82.84
Eastside 9.9% $ 74.79
Far West Side 17.5% $ 85.19
Grand Central 14.8% $ 78.13
Murray Hill 10.1% $ 61.75
Park Avenue 12.7% $ 104.75
Penn Station 8.3% $ 64.93
Plaza District 13.3% $ 110.91
Sixth Ave/Rock Ctr. 13.2% $ 87.60
Times Square 10.0% $ 80.55
Times Square South 10.4% $ 61.64
Westside 9.1% $ 70.28
Midtown South 8.0% $ 72.60
Chelsea 7.6% $ 66.23
East Village 0.6% $ 48.00
Flatiron/Union Square 8.0% $ 71.22
Hudson Square/Meatpacking 11.7% $ 84.02
Soho/Noho 5.2% $ 72.64
Downtown 12.3% $ 62.40
Downtown East 11.8% $ 57.70
Downtown West 12.7% $ 67.84
Tribeca/City Hall 14.1% $ 65.43
Submarket Rent Growth Comparison
25%
8%
11%
6%
1%
5%
-1%
7%
2%
1%
0%
0%
-8%
5%
13%
1%
4%
4%
5%
8%
8%
8%
9%
15%
9%
10%
12%
9%
9%
6%
7%
9%
10%
8%
7%
7%
13%
8%
Tribeca/City Hall
Downtown West
Downtown East
Soho/Noho
Hudson Square/Meatpacking
Flatiron/Union Square
East Village
Chelsea
Westside
Times Square South
Times Square
Sixth Ave/Rock Ctr.
Plaza District
Penn Station
Park Avenue
Murray Hill
Grand Central
Far West Side
Eastside
Growth Per Annum Since 2010 (%) Growth Past 12 Months (%)
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

11
$89.02
$57.02
$82.84
$58.93
$40.33
$72.60
$51.56
$39.09
$62.40
$25
$35
$45
$55
$65
$75
$85
$95
3Q05 3Q06 3Q07 3Q08 3Q09 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 3Q16
Average Asking Rent by Market ($/SF)
ASKING RENT TRENDS
Average Annual Change
Since Trough (2010)
Change since
2015
MT 6.4% 3.9%
MTS 10.3% 3.7%
DT 8.1% 9.7%
Year-over-year asking rent growth pulled
back from the 6-year average in Midtown and
Midtown South. Downtown pushed slightly
ahead.
Key
Takeaway
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

12
$65.23
$60.24
$42.65
$30
$35
$40
$45
$50
$55
$60
$65
$70
$75
$80
2010 2011 2012 2013 2014 2015 2016 YTD
*Midtown 2016 YTD averages are impacted on a weighted basis by the Citadel deal at 425 Park. Including
that deal, the average taking rent is pushed to $79.40/SF and average NER is pushed to $67.96/SF.
NER Rent Trends
Average net effective rents for direct deals with >5-year terms
TAKING AND NET EFFECTIVE RENT TRENDS
Taking rent growth has slowed with the
exception of Midtown, while net effective
rents have flattened year-over-year.
Key
Takeaway
$76.03
$67.19
$52.61
$30
$35
$40
$45
$50
$55
$60
$65
$70
$75
$80
2010 2011 2012 2013 2014 2015 2016 YTD
Base Taking Rent Trends
Average Annual Change Since
Trough (2009-2010)
Change Since 2015
MT 6.1% 7.6%
MTS 9.8% 1.0%
DT 7.2% 3.7%
Average Annual Change Since
Trough (2009-2010)
Change Since 2015
MT 5.1% 1.6%
MTS 8.4% 1.6%
DT 4.9% 1.1%
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

13
Submarket Market
Average Base
Taking Rent ($/SF)
Park Avenue* MT $124.56
Plaza District MT $89.23
Hudson Square/
Meatpacking
MTS $84.65
Far West Side MT $84.13
Sixth Ave/Rock
Ctr.
MT $78.22
NoHo/SoHo MTS $76.05
Westside MT $75.48
Eastside MT $73.22
Grand Central MT $66.94
Chelsea MTS $65.89
Times Square MT $65.20
Flatiron/Union
Square
MTS $63.75
Penn Station MT $62.20
Times Square
South
MT $60.81
Downtown West DT $60.38
Murray Hill MT $52.64
Downtown East DT $49.67
Corridor Market
Average Base
Taking Rent ($/SF)
Park Avenue* MT $107.91
Upper Fifth Avenue
(47th - 65th Streets)
MT $93.36
East 50s MT $78.54
Avenue of the
Americas
MT $77.16
West 50s MT $76.57
Broadway MTS $76.37
Lexington Avenue MT $76.01
Madison Avenue MT $74.49
Park Avenue South MTS $73.55
Broadway MT $71.25
Eighth Avenue MTS $68.57
West 40s MT $68.20
Fifth Avenue MTS $67.95
Third Avenue MT $65.66
West 20s MTS $65.28
East 40s MT $63.17
Lower Fifth Avenue
(32nd - 47th
Streets)
MT $61.85
East 20s MTS $58.02
Madison Avenue MTS $53.37
Water Street DT $51.83
Broadway DT $51.08
*Park Avenue Submarket and Corridor averages are impacted on a
weighted basis by Citadel deal at 425 Park.
Average taking rents for direct deals with >5-year terms
TAKING RENT CORRIDOR AND SUBMARKET COMPARISONS
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

14
$65.73
$68.18
$70.00
$72.31
$76.90
$83.32
$86.46
$93.50
$61.67
$62.78
$66.86
$65.80
Chelsea
Eastside
Downtown East
Times Square South
Penn Station
Westside
Sixth Ave/Rock Ctr.
Grand Central
Park Avenue
Plaza District
Downtown Midtown South Midtown
2016 YTD Average Work Amount ($/SF) Percent Change Year-Over-Year
Work amount for direct deals with >10-year terms, +10K SF
CONCESSIONS ANALYSIS
Landlords are spending more on build-
outs through prebuild programs or work
allowances.
Key
Takeaway
-8%
-5%
0%
11%
17%
18%
18%
26%
4%
8%
16%
-2%
Times Square South
Westside
Downtown East
Eastside
Sixth Ave/Rock Ctr.
Chelsea
Penn Station
Park Avenue
Plaza District
Grand Central
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

15
7
8
9
9
9
9
10
11
11
8
9
9
8
9
Times Square
Downtown East
Eastside
Chelsea
Downtown West
Westside
Grand Central
Plaza District
Times Square South
Penn Station
Sixth Ave/Rock Ctr.
Park Avenue
2016 YTD Free Rent (Months) Percent Change Year-Over-Year
Free rent for direct deals with >10-year terms, +10K SF
CONCESSIONS ANALYSIS
Free rent has increased in about one-third
of Manhattan’s submarkets, but remained
flat or dropped in all others.
Key
Takeaway
-13%
-13%
0%
0%
0%
10%
11%
11%
13%
-11%
13%
14%
0%
0%
Times Square
Times Square South
Westside
Eastside
Downtown East
Grand Central
Downtown West
Park Avenue
Sixth Ave/Rock Ctr.
Penn Station
Plaza District
Chelsea
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

16
19
48
44
12
8
19 17
24 25
36
33
7
8
5
2
4
4 8
5
7
5
0
10
20
30
40
50
60
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD
1Q-3Q 4Q
Midtown
30 Hudson Yards
888 Seventh Avenue
250 West 55th Street
7 Bryant Park
1095 Avenue of the Americas
712 Fifth Avenue
717 Fifth Avenue
745 Fifth Avenue
767 Fifth Avenue
9 West 57th Street
10 East 53rd Street
437 Madison Avenue
510 Madison Avenue
650 Madison Avenue
660 Madison Avenue
667 Madison Avenue
277 Park Avenue
280 Park Avenue
350 Park Avenue
375 Park Avenue
399 Park Avenue
425 Park Avenue
450 Park Avenue
499 Park Avenue
601 Lexington Avenue
Midtown South
111 Eighth Avenue
860 Washington Street
770 Broadway
315 Park Avenue South
Number of buildings that signed $100+ taking rents each year
TRIPLE-DIGIT TAKING RENT ASSETS
Despite an overall slow-down in rent growth,
demand remains for premier space. Manhattan is
set to match 2015 in +$100/SF rent buildings.
Key
Takeaway
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

17
34
74
58
10
17
38
24
38
31
46
27
7
16
26
6
9
16
13
22
19
9
17
11
29
18
3 1 1 1 3
7
3
9
4
12
8
3 2 4 8 6
11
13 4
0
25
50
75
100
Transactions with taking rents over $100/SF
MANHATTAN TOP-TIER TRENDS
Transactions Under 20K SF: Transactions Over 20K SF:Relocations Renewals and Expansions Relocations Renewals and Expansions
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD
The volume of triple-digit deals is consistent
with 2015 totals.
Key
Takeaway
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

18
Transactions with taking rents over $75/SF
MIDTOWN SOUTH TOP-TIER TRENDS
Other
16%
Business
Services
31%
FIRE
32%
TAMI
21%
2016 YTD MTS Taking Rents Over $75/SF By Industry
1 2
7 7
30
34
19
0
10
20
30
40
2010 2011 2012 2013 2014 2015 2016 YTD
Deal-making at the top end of the market in
Midtown South has slowed in 2016 from the
past two years.
Key
Takeaway
Number of Deals Signed Over $75/SF
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

19
0%
5%
10%
15%
20%
25%
$40s $50s $60s $70s $80s $90s $100s $110s $120s $130s $140+
Number of Deals by Taking Rent
Under 10,000
SF
64%
10K-25K SF
23%
25K-50K SF
8%
50K-100K SF
2%
Over
100,000 SF
3%
Number of Deals by Size
MIDTOWN DEAL COMPOSITION
Direct deals with five-year terms and longer
Company Address SF Lease Type Industry
Random House 1745 Broadway 605,000
Extension &
Expansion
TAMI
C.V. Starr 399 Park Avenue 210,963
Renewal &
Expansion
FIRE
Dentons 1221 Avenue of the Americas 207,371 Renewal
Legal
Services
Bloomberg 919 Third Avenue 204,000 Expansion FIRE
Morgan Stanley 399 Park Avenue 110,000 Direct New FIRE
Despite strong leasing over 100,000 square feet,
the overwhelming majority of Midtown deals are
small and mid-sized deals in commodity space.
Key
Takeaway
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

20
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
$40s $50s $60s $70s $80s $90s $100+
Under 10K SF
65%
10K-25K SF
25%
25K-50K SF
10%
MIDTOWN SOUTH DEAL COMPOSITION
Taboola 1115 Broadway 48,010 Direct New TAMI
Deloitte 330 Hudson Street 47,222 Sublease FIRE
Winton Capital 315 Park Avenue South 34,400 Direct New FIRE
Lieff Cabraser Heimann
& Bernstein LLP
250 Hudson Street 27,778 Renewal
Legal
Services
Ernst & Young 218 West 18th Street 27,008 Sublease FIRE
Few high-priced deals and a lack of large
transactions during 3Q16 underscore the
recent slow-down in activity in Midtown
South
Key
Takeaway
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

21
0%
5%
10%
15%
20%
25%
30%
35%
$30s $40s $50s $60s $70s $80s
Under 10K SF
49%
10K-25K SF
33%
25K-50K SF
15%
Over 100K SF
3%
DOWNTOWN DEAL COMPOSITION
Zurich Insurance
4 World Trade
Center
131,876 Direct New FIRE
QBE 55 Water Street 97,228 Sublease FIRE
American Express 200 Vesey Street 80,000 Direct New FIRE
Port Authority of NY & NJ 80 Pine Street 57,245 Sublease Gov’t
The Solomon R.
Guggenheim Foundation
1 Liberty Plaza 46,588 Direct New Nonprofit
Downtown saw stability in the range of pricing
and a healthy mix in size of transactions.
Key
Takeaway
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

3Q16
MANHATTAN DEVELOPMENT
OVERVIEW
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

23
0
2
4
6
8
10
12
14
16
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
TBD
COMMERCIAL DEVELOPMENT PIPELINE
MANHATTAN (MSF)
New
Construction
86.9 MSF
Expected
Delivery
15.0 MSF
Potential
Delivery
13.7 MSF
2014 837 Washington Street
1 World Trade Center
2015 7 Bryant Park
2016 10 Hudson Yards
860 Washington Street
89 Bowery
2017 432 Park Avenue
390 Madison Avenue
510-512 West 22nd Street
2 Pike Street
412-414 West 15th Street
2018 300 Lafayette Street
425 Park Avenue
55 Hudson Yards
61 Ninth Avenue
40 Tenth Avenue
2019 1 Manhattan West
30 Hudson Yards
3 Hudson Boulevard
2020 One Vanderbilt Avenue
TBD 50 Hudson Yards
2 Manhattan West
66 Hudson Boulevard
15 Penn Plaza
438 Eleventh Avenue
75 Ninth Avenue
44 Union Square East
Key
Takeaway
About 29 M Sq. Ft. of new office
product is under construction or in the
planning stages in Manhattan.
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

3Q14 MANHATTAN DEVELOPMENT UPDATE
4b
4a
5
1
3c
3d
3a
3b
2
MANHATTAN
WEST
4a
4b
55 HUDSON
YARDS
1
450 WEST
33rd STREET
2
1
2
3
4
Memorial
2 WTC
WTC
Transportation
Hub
WORLD TRADE CENTER
AND DOWNTOWN
3 HUDSON
BOULEVARD
5
7 BRYANT PARK
ONE
VANDERBILT
AVENUE
425 PARK
AVENUE
390 MADISON
AVENUE
1 WTC
3b
3a
Retail space3c
4 WTC3 WTC
6
MIDTOWN EAST
66 & 99
HUDSON
BOULEVARD
FAR WEST SIDE
6
7
7
10, 30 & 50
HUDSON YARDS
3d
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

25
MANHATTAN DEVELOPMENT OVERVIEW
WORLD TRADE CENTER
PORT AUTHORITY
OF NY/NJ, DURST
SILVERSTEIN PROPERTIES
1 World
Trade Center
2 World
Trade Center
3 World
Trade Center
4 World
Trade Center
3.0M SF 2.8M SF 2.5M SF 2.3M SF
2014 TBD 2018 2013
Completed Planned Under Construction Completed
MIDTOWN EAST
BANK OF CHINA
L&L HOLDING,
RREEF
L&L HOLDING
COMPANY
SL GREEN
7 Bryant
Park
390 Madison
Avenue
425 Park
Avenue
One Vanderbilt
Avenue
473,000 SF 843,710 SF 670,000 SF 1.8M SF
2015 2017 2018 2020
Completed Under Renovation Under Construction Planned
FAR WEST SIDE
THE RELATED
COMPANIES
MITSUI FUDOSAN,
RELATED
THE RELATED
COMPANIES
BROOKFIELD PROPERTIES, QIA
THE RELATED
COMPANIES
MOINIAN
GROUP
TISHMAN SPEYER
10 Hudson
Yards
55 Hudson
Yards
30 Hudson
Yards
1 Manhattan
West
2 Manhattan
West
50 Hudson
Yards
3 Hudson
Boulevard
66 Hudson
Boulevard
99 Hudson
Boulevard
1.7M SF 1.3M SF 2.6M SF 2.1M SF 2.1M SF 2.3M SF 1.8M SF 2.85M SF 1.3M SF
2016 2018 2019 2019 TBD TBD TBD TBD TBD
Completed Under Construction Under Construction Under Construction Planned Planned Under Construction Planned Planned
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

26
Rendering
not yet
available
MANHATTAN BOUTIQUE DEVELOPMENT OVERVIEW
Rendering
not yet
available
YEUNG REAL ESTATE
THE RELATED
COMPANIES
VORNADO REALTY TRUST LM LEGACY GROUP
AURORA, WILLIAM
GOTTLIEB REAL ESTATE
SAVANNA, ATOM ASSETS
2 Pike Street 300 Lafayette Street 61 Ninth Avenue 412 West 15th Street 40 Tenth Avenue 106 West 56th Street
Midtown South Midtown South Midtown South Midtown South Midtown South Midtown
93,000 SF 81,000 SF 167,170 SF 144,273 SF 116,205 SF 90,000 SF
2017 2018 2018 2017 2018 2019
Planned Under Construction Under Construction Under Construction Planned Planned
ROMANOFF EQUITIES CIM GROUP WING FUNG GROUP SAVANNA
VORNADO REALTY
TRUST, ALBANESE
ORGANIZATION
860 Washington Street 432 Park Avenue 89 Bowery 540 West 26th Street 512 West 22nd Street
Midtown South Midtown Midtown South Midtown South Midtown South
120,413 SF 71,000 SF 23,831 SF 128,367 SF 170,000 SF
2016 2017 2016 2017 2017
Completed Under Construction Under Construction Under Construction Under Construction

3Q16
BROOKLYN AND LONG ISLAND CITY
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

28
121 Morgan Avenue
68 Ferris Street
87 Wythe Ave
25 Kent Avenue
Dumbo
Williamsburg
Navy Yard
Sunset Park
Building 3
25-30 Columbia Heights
Domino Sugar
Factory
80 Hudson Avenue
GMC Building 128
Dock 72
Industry City
Whale Square
Building
77
215 Moore Street
Bushwick
95 Evergreen Avenue
455 Jefferson Street
333 Johnson Avenue
41 Flatbush
Avenue
420 Albee
Square
29 Ryerson Street
47 Hall Street
10 Jay Street
Downtown
422 Fulton
Street
280 Richards Street
160 Van Brunt Street
314 Scholes Street
Redhook
BROOKLYN OFFICE DEVELOPMENT
New Construction and Repositioned Buildings
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

29
DUMBO DOWNTOWN BROOKLYN NAVY YARD
Triangle
Assets
Cibrano
Family
Kushner Co.,
CIM Group,
LIVWRK
Quinian Dev
Group, BLT
JEMB Realty
Corp.
Tishman
Speyer
Brooklyn Navy Yard
Development Corp.
Madison
Realty
Capital
Boston
Properties,
Rudin Mgt
Westbrook
Partners, RXR
10 Jay
Street
80 Hudson
Avenue
25-30
Columbia
Heights
41 Flatbush
Avenue
420 Albee
Square
422 Fulton
Street
GMC
Building 128
Building
77
Building
3
29 Ryerson
Street
Dock
72
47 Hall
Street
206,000 90,285 750,000 270,910 400,000 TBD 215,000 1,100,000 700,000 215,000 675,000 650,000
2016 2016 2018 2016 2018 TBD 2016 2017 2017 2017 2018 2018
New
Construction
Redevelop Redevelop Redevelop
New
Construction
Redevelop Redevelop Redevelop Redevelop Redevelop
New
Construction
Redevelop
Underway Underway Proposed Underway Proposed Planned Underway Underway Planned Underway Proposed Proposed
Rendering
not yet
available
Rendering
not yet
available
Rendering
not yet
available
SUNSET PARK RED HOOK WILLIAMSBURG BUSHWICK
Jamestown,
Belvedere
Cap, Angelo
Gordon
Madison
Realty
Capital
PWR
Estate
Four
Thor
Equities
Heritage
Equity
Cayuga
Capital
Two Trees
Mgt
Savanna,
Hornig
Capital
Lincoln
Property
Group
Hudson
Co.
Princeton
Holdings
Normandy,
Royalton,
Sciame
Heritage
Equity
Industry
City
Whale
Square
160 Van
Brunt
Street
68
Ferris
Street
280
Richards
Street
25
Kent
Avenue
87
Wythe
Avenue
Domino
Sugar
Factory
95
Evergreen
Avenue
455
Jefferson
Street
314
Scholes
Street
121
Morgan
Avenue
333
Johnson
Avenue
215
Moore
Street
6,000,000 405,416 111,565 1,200,000 622,103 400,000 100,000 380,000 165,000 122,700 80,000 100,000 285,000 170,000
In phases
starting 2015
2016 2016 2020 TBD 2018 2018 TBD 2016 2016 2018 TBD TBD TBD
Redevelop Redevelop Redevelop
New
Construction
New
Construction
New
Construction
New
Construction
Redevelop Redevelop Redevelop Redevelop Redevelop Redevelop Redevelop
Underway Completed Completed Proposed Proposed Proposed Underway Planned Completed Underway Proposed Planned Planned Planned
Submarket
Owner/
Developer
Building
Address
Size (SF)
Year Open
Project Type
Status
BROOKLYN OFFICE DEVELOPMENT
New Construction and Repositioned Buildings
Submarket
Owner/
Developer
Building
Address
Size (SF)
Year Open
Project Type
Status
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

30
DOWNTOWN
BROOKLYN
SUNSET
PARK
DUMBO
WILLIAMSBURG/
BUSHWICK
NAVY YARD
2013 Inventory (SF) 15,985,404 6,000,000 3,254,111 1,532,155 1,698,330
Current Inventory (SF) 16,027,693 6,500,000 3,908,181 1,592,745 3,155,330
Projected Inventory (SF)
Through 2018
16,427,693 6,500,000 4,658,181 3,356,196 4,480,330
Inventory Differential
(SF)
2013-2018
442,289 500,000 1,404,070 1,824,041 2,782,000
BROOKLYN’S CHANGING INVENTORY
Impact of New Construction and Repositioned Buildings
2.8%
SF DIFFERENCE
2013-2018
8.3%
SF DIFFERENCE
2013-2018
43.1%
SF DIFFERENCE
2013-2018
119.1%
SF DIFFERENCE
2013-2018
163.8%
SF DIFFERENCE
2013-2018
Key
Takeaway
Redevelopment and projects under
construction are creating new submarkets in
Brooklyn.
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

31
0%
2%
4%
6%
8%
10%
12%
14%
16%
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
3Q06 3Q07 3Q08 3Q09 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 3Q16
Average Asking Rent (Price/SF) Availability (%)
Overall Average Asking Rent and Availability
BROOKLYN MARKET TRENDS
Across Brooklyn, new inventory continued
to push asking rents and availability to
new historic highs.
Key
Takeaway
0%
2%
4%
6%
8%
10%
12%
14%
16%
$0
$10
$20
$30
$40
$50
$60
3Q06 3Q07 3Q08 3Q09 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 3Q16
Prime Assets Average Asking Rent and Availability
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

32
Greenpoint
Bushwick
Bedford
Stuyvesant
Clinton
HillFort
Greene
Navy
Yard
DUMBO
Cypress
Hills
East
New York
Brownsville
Crown
Heights
East
Flatbush
Canarsie
Prospect
HeightsPark
Slope
Red
Hook
Prospect
Park
Lefferts
Gardens
Sunset
Park
Windsor
Terrace
Bay
Ridge Dyker
Heights
Fort
Hamilton Bensonhurst
Bath
Beach
Gravesend
Coney
Island
Sea
Gate
Brighton
Beach
Manhattan
Beach
Sheepshead
Bay Gerritsen
Beach
BK
Marine Park
Barren
Island
Mill
Basin
Bergen
BeachMarine
Park
Flatlands
Midwood
Borough
Park
Flatbush
Kensington
Prospect
Park
South
Jamaica Bay
Upper
New York
Bay
Lower
New York
Bay
Cobble
Hill
Williamsburg
BK
Heights
Prime Assets are Class A and newly repositioned space. Standard Assets are all other office inventory.
BROOKLYN SUBMARKET SNAPSHOT
 Total Inventory: 16,027,693 SF
 Availability Rate: 4.6%
 Average Asking Rent, Prime
Assets: $48.30/SF
 Average Asking Rent, Standard
Assets: $41.22/SF
 YTD Absorption: -117,085 SF
DOWNTOWN BROOKLYN
Assets: $52.76/SF
Assets: $29.59/SF
 YTD Absorption: 1,300 SF
WILLIAMSBURG / BUSHWICK
 Average Asking Rent: $39.75/SF
 The addition of 29 Ryerson Street
caused a jump in rent in 3Q16.
BROOKLYN NAVY YARD
 Average Asking Rent: $27.73/SF
SUNSET PARK
Assets: $58.00/SF
Assets: $34.75/SF
DUMBO
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

33
$27.73
$38.35 $39.75
$48.30
$52.76
$58.00
$62.40
$72.60
$82.84
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Sunset Park
Prime
Long Island City
Prime
Brooklyn Navy
Yard - Prime
Downtown
Brooklyn - Prime
Williamsburg /
Bushwick
Prime
Dumbo
Prime
Downtown
Manhattan
Overall
Midtown South
Overall
Midtown
Overall
Average Asking Rents ($/SF)
ASKING RENT COMPARISON
Prime Assets are Class A and newly repositioned space.
Dumbo and Williamsburg’s prime assets
compete with Downtown Manhattan.
Key
Takeaway
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

34
0%
4%
8%
12%
16%
20%
$10
$15
$20
$25
$30
$35
$40
3Q06 3Q07 3Q08 3Q09 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 3Q16
Overall Average Asking Rent and Availability
LONG ISLAND CITY TRENDS
 Asking rents reached new heights
in 3Q16, rising to $37.78/SF, a
14.8% increase year-over-year.
 The Factory District drove leasing
this quarter. Media and Internet
company IAC signed for 8,000
square feet at 47 Austell Place.
Lyft and Uber both expanded in
the Falchi Building.
 Availability declined 70 basis
points to 13.2% this quarter,
however current availability is still
significantly higher than it was 12
months ago.
Despite Long Island City’s asking rents
reached a new all time high level as new
and improved inventory droves rents up.
Key
Takeaway
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

35
Astoria
Factory District
Hunter’s Point/
LIC Waterfront
 Average Asking Rent, Prime Assets:
$35.48/SF
 Average Asking Rent, Standard Assets:
$29.04/SF
ASTORIA
$40.47/SF
$30.00/SF
THE FACTORY DISTRICT
$40.00/SF
$31.64/SF
HUNTERS POINT/LIC WATERFRONT
Prime Assets are Class A and newly
repositioned space. Standard Assets are all
other office inventory.
LONG ISLAND CITY SUBMARKET SNAPSHOT
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com

www.ngkf.com
New York City
HEADQUARTERS
125 Park Avenue
New York, NY 10017
212.372.2000
Todd P. Hershman
Associate Director
212.359.8520
THershman@ngkf.com
Jonathan Mazur
Managing Director, Research
Stephanie Jennings
Tri-State Director, Research
All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark Grubb Knight Frank (NGKF) has not verified
any such information, and the same constitutes the statements and representations only of the source thereof, and not of NGKF. Any recipient of this publication
should independently verify such information and all other information that may be material to any decision that recipient may make in response to this publication,
and should consult with professionals of the recipient’s choice with regard to all aspects of that decision, including its legal, financial, and tax aspects and
implications.
Any recipient of this publication may not, without the prior written approval of NGKF, distribute, disseminate, publish, transmit, copy, broadcast, upload, download,
or in any other way reproduce this publication or any of the information it contains.
Newmark Grubb Knight Frank has implemented a proprietary database and our tracking methodology has been revised. With this expansion and refinement in our
data, there may be adjustments in historical statistics including availability, asking rents, absorption and effective rents.
Newmark Grubb Knight Frank Research Reports are also available at www.ngkf.com/research
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