Stat of the Week: 12.2 Million Square Feet
Richard Persichetti April 23, 2015, 9:50 a.m.
Throughout Manhattan there are more than 700 companies with current space requirements greater than 10,000 square feet. Then there’s another subset of companies competing for 39.4 million square feet of office space, led by 84 tenants with space requirements greater than 100,000 square feet. With the Manhattan office market off to a slow start in 2015, which industries are likely to make the biggest leasing impact over the next nine months?
Of these 700-plus firms, 190 of them are from the TAMI (technology, advertising, media and information services) sector. The financial services sector is not far behind with 175 companies in the market for office space. Rounding out the top three is the professional services sector with 123 companies looking for space, 52.8 percent of which are law firms. Combined, these three industries account for 69.6 percent of the current demand for office space in Manhattan.
Not surprisingly, these three industries are also the top three for total square footage requirements. In this category, however, the financial services and TAMI sectors swap the first and second spot on the list. The financial services sector is currently in the market for more than 12.2 million square feet, with 23 tenants in the market for 100,000 square feet and greater. The TAMI sector is looking for more than 9.5 million square feet, and only has 13 tenants in the market with large space requirements. The professional services sector is in the market for more than 6 million square feet, and has 14 companies searching for 100,000-plus-square-foot spaces.
Measuring tenant space needs by average size requirement changes out two of the top three. The industry sector with the largest average size requirement is the arts, entertainment and recreation industry, averaging over 83,000 square feet per company. The financial services sector is the only industry to place in all three categories, averaging over 69,000-square-foot requirements per firm. The education and health care industry ranks third on this list, with an average space requirement of just over 60,000 square feet. On the flip side, the nonprofit/government sector averages the lowest space requirement at a little over 39,000 square feet.