Financial Turmoil Has This Gateway Office Market Cooling Down

Financial turmoil saw Manhattan’s office market—one of the hottest in the world—cooling down in Q1 ’16.

Leasing dropped from 7M SF last year to 6.6M SF during Q1, according to Cushman & Wakefield data, and about 806k SF more space hit the market than was leased, the first time since Q3 ’13 NYC has seen negative absorbtion.

2016 had a slow start because of early stock market turmoil, Richard Persichetti, Cushman’s Northeast research director, tells Bloomberg. “Corrections in the stock market also led to some price corrections in the real estate market—that whole snowball effect, so to speak.”

The slowing comes after a breakneck pace over the last two years—Cushman’s data shows that 32.8M SF was leased in 2014, the most since 1998. [Bloomberg]

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