7. Downtown Employment Outlook Anticipated construction can facilitate approximately 40,000 new employees. Crain’s New York anticipates a total of 11,000 jobs lost due to the current financial crisis. Due to new construction and estimated job losses, there will be an increase of 12% in available office space. Much of this space will be high quality, Class A, office space.
8. Conclusion The near-term (60 month) outlook for Class A office space in Lower Manhattan will see decreasing rents. Class A rents will fall below the $40.00 psf at some point between 2011 and 2013. We can also anticipate increases in abatement. Class B buildings South of 14th Street will have to significantly increase work letters for new tenants in order to compete with the abundant amount of Class A space.
9. Contact Details If you have any questions or comments, please feel free to contact me: sherman@homemail.com
