New space brings downgrade to NYC office rents

The limited impact of the virus on New York City office construction means that we now expect at least 10mn sq. ft. of office space to be added across 2022-23. This could cause the vacancy rate to climb by 400-500 bps in the next three years. As a result, we are downgrading our rent forecasts for the city and expect asking and net effective rents to fall by 9% and 11% respectively by the end of 2023.   WEBINAR INVITE: To mark the upcoming launch of The Long Run, our dedicated long-term service, we’re holding a special webinar on 11th February to discuss how we see economies and markets performing out to 2050. Complimentary registration here for either of two sessions.