August 11th, 2016
New York City’s Central Business District is the largest of its kind in the United States and is one of the worlds most prosperous and resilient business hubs. Although there are several designated business districts in New York, the city’s primary CBD refers to the area comprised of Midtown and downtown Manhattan.
The area has been an influential economic and financial center since the 19th century, mainly thanks to the presence of the New York Stock Exchange and other important financial institutions. Over the years, the CBD grew in size, population, and in the diversity of its industrial and commercial base. Nowadays, New York’s CBD is home to approximately 1.6 million residents and is visited by up to 4 million people every day, including tourists, commuters, and residents. According to the city’s Chamber of Commerce, the CBD is home to more than 310,000 registered businesses.
The CBD is well connected to the rest of the city via mass transit, as the area is served by 14 subway lines and more than 30 bus lines, which provide 24/7 access to the business heart of New York. The Staten Island ferry terminal is also located within the CBD’s boundaries. Connections with nearby urban centers (such as New Jersey) are readily available via frequent PATH trains. The nearest airport is New York – LaGuardia, which is approximately 10 miles east of Times Square and 12 miles away from Wall Street.
Key industries and employers
According to statistical data published in a recent Demographia report, New York’s CBD employs more than 22 per cent of the city’s workforce (nearly 2 million people). This is by far the largest share of employment of all CBDs in the United States. The CBD also ranks first in terms of the number of Fortune 500 companies, as there are more than 50 such corporations in New York’s CBD. Read the rest of this entry »
February 17th, 2016
An in depth look at how the Manhattan office space market has fared in 2015 and forecasts for this coming year.
Manhattan Office Market Overview of 2015
Over the past 12 months, federal economic policy has been focusing on expansion, driving an increase in employment rates, especially as far as office-based employment is concerned. This type of employment grew by 2.6 per cent in just 1 year, and prompted a considerable increase in demand led by occupiers in the Manhattan financial services sector. In certain Manhattan sub-markets (such as in Midtown South), strong demand from tenants in the TAMI sector (technology, advertising, media, and information) was also evident.
At the end of 2015, total office stock in Manhattan was just under 395 million square feet, of which 28 million were vacant. Total transaction volume amounted to more than 28 million square feet, one of the highest figures of the past 10 years. However, there was a slight decline in transaction volumes in downtown Manhattan, where transactions mostly involved small and medium-sized office properties.
Manhattan Office Market: Key Facts & Figures
During 2015, office vacancy rates in Manhattan went down from 9.3 per cent to 8.5 per cent. This decrease equals to 90 basis points on a year-on-year basis, and brings vacancy rates closer to Manhattan’s historical average of 8.9 per cent. In Midtown South, vacancy rates were markedly lower at 6.2 per cent, whereas in downtown Manhattan they went down by 30 basis points to 9.4 per cent. Read the rest of this entry »
March 31st, 2015
Overview of Business in Manhattan
For decades, Manhattan has been a global business hub of undisputed prestige. This New York borough is home to some of the world’s most successful businesses and to the largest stock exchange in the world. Manhattan has repeatedly topped the global lists of most powerful cities, staying ahead of other leading business hubs like London, Dubai, Hong Kong, or Shanghai. Due to its excellent infrastructure, world-class business environment, and valuable human capital, Manhattan is the world’s most desirable business location . The borough’s thriving business scene is a catalyst for economic growth, and this is reflected in the local employment levels. According to the NYCEDC, more than 310,000 jobs are based in this borough, tens of thousands of which have been created in the private sector since 2005.
The banking and financial sector is the key economic driver for the local economy. More than 300,000 people are employed in this industry, which according to the Federal Reserve generates more than 35 per cent of the city’s income. The service sector is another key industry in Manhattan, as it employs over 1 million people in areas like tourism (over 240,000 jobs), professional and business services (287,000 jobs), or healthcare and social assistance (208,000 jobs).
The number of technology, advertising, media, and information companies (TAMIs) has skyrocketed since 2009. Back then, TAMIs barely occupied 100,000 square feet of space in Manhattan, but at the end of 2014 that figure had increased to more than 1.6 million. A report published by the Downtown alliance estimates that this sector is comprised of over 800 firms that generate a combined annual output of $125 billion and that employ nearly 29,000 people. Likewise, Manhattan has recently been attracting a steady number of creative firms. According to an article published at the Wall Street Journal, the number of employees working in creative ventures in this part of Manhattan has increased by 71 per cent over the past five years. Read the rest of this entry »