Manhattan office market in favour of landlords
New York’s Manhattan Midtown moved up two places to rank as the world’s third most expensive office market, surpassing Moscow and Tokyo, according to Cushman & Wakefield’s annual Office Space Across the World global ranking.
Occupier activity in New York City was powered by large deals with total take-up reaching a 32.8 million sq ft in 2014 – the highest level in more than 15 years.
New York’s Manhattan (Midtown: Madison/5th Avenue) secures the top spot in the region, followed by Rio de Janeiro and São Paolo in Brazil. There was no movement in the top three cities in 2014, which are consistent with those seen in 2013.
The accelerating U.S. economic recovery is quickly propelling the Manhattan office market beyond equilibrium in favour of landlords, resulting in falls in the amount of quality space available which should lead to solid rental increases in 2015, according to Cushman & Wakefield.
New York City continued to record healthy employment growth and as it has been throughout the recovery, much of the growth in office-using jobs has been in the technology, advertising, media and information industries.
Houston is a noteworthy market, given its exposure to the oil sector that has seen barrel prices plummet over the last few months.
Bogota did well in terms of occupancy cost growth (26.2%) and propels the city from 14th position in Cushman & Wakefield’s 2013 Americas regional ranking to sixth in 2014.