Snapshots

Manhattan Class B inventory removals have driven commodity space market fundamentals

Since 2009, more than 40 million feet of Class B office product has been either demolished, converted, or substantially renovated into Class A space.

April 02, 2019
  • Since 2009, more than 40 million feet of Class B office product has been either demolished, converted, or substantially renovated into Class A space.
  • This conversion of commodity-class space to higher and better use has been the main driver of Class B vacancy compression this cycle.
  • Over the last two years, flexible space providers have further compressed what little availability remains in the Class B market, with the industry leasing more than 6.6 million square feet of Class B space since Q1 2017.
  • The resulting availability shortfall has resulted in record high Class B asking rents.

    Source: JLL Research

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