NYC Market Update: Manhattan’s Office Pipeline Surpasses 20 MSF
The borough’s under-construction stock has increased 15 percent year-over-year, according to CommercialEdge.
As of June, 20.9 million square feet of office space was taking shape within Manhattan, a 15 percent expansion year-over-year, according to CommercialEdge data.
By mid-2021, Manhattan’s pipeline amounted to 4.3 percent of total stock, well above the national average of 2.4 percent, and exceeding that of other gateway markets, such as San Francisco (4.1 percent), Miami (3.7) and Los Angeles (3.2), but falling behind Boston (5.5) and Seattle (4.7).
The borough’s pipeline is largely sustained by several massive developments that have been underway before the pandemic and concentrate around Hudson Yards. The largest project to have broken ground in the first six months of the current year is the $242 million, 414,000-square-foot Urban League Empowerment Center in Harlem.
As for deliveries, the 344,600-square-foot One Essex Crossing’s workspace component remains the largest office space to be completed in 2021. Situated at 145 Delancey St., the mixed-use building is part of the large-scale Essex Crossing development spanning nine full city blocks on the Lower East Side. The developers—Taconic Partners, L+M Development Partners and BFC Partners—are marketing the Class A office space at 145 and 155 Delancey St. as Essex Crossing Offices. Totaling 350,000 square feet, the Offices are divided equally between the pair of adjacent buildings.
Downtown Brooklyn’s Tallest Tower Delivers
Although seeing slow but steady growth throughout 2021, Brooklyn’s June pipeline has shrunk to January levels, clocking in at 2.6 million square feet. The delivery of the borough’s tallest office tower in Downtown is largely behind the swift drop. Dubbed 1 Willoughby Square, JEMB Realty’s 500,000-square-foot, 36-story high-rise is the first new office structure to be completed within the area since downtown Brooklyn’s 2004 rezoning.
The 400,000-square-foot 141 Willoughby St. property is now the largest office development underway within the borough. Situated a block north of 1 Willoughby Square, the project has been in the works since the end of 2020, with developer Savanna landing a $264 million construction loan back in May.
CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here.
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