Stat of the Week: 71 Blocks
There are currently 60 existing big blocks of available space on the market greater than 100,000 square feet. These 60 large spaces account for over 18.5 million square feet of available space. The amount of available space increases to 29.5 million square feet with the addition of 11 blocks of space from buildings currently under construction and/or proposed to be completed by 2020.
Although 71 blocks of space seems like an overabundant supply, I can remember in 2013 when there were 89 of these spaces available. But, like one of my mentors used to say when market indicators seemed negative, “It’s not the apocalypse!”
With 71 blocks available, there are numerous opportunities for the 75 tenants reportedly in the market with requirements greater than 100,000 square feet. Over the last 12 years, 48 percent of large tenants renewed in place rather than relocated, and trying to figure out which ones may leave versus stay in place can feel like a game of Tetris. The 71 blocks of available space breakdown as follows:
· 100,000–250,000 square feet: 41 blocks
· 250,000–500,000 square feet: 14 blocks
· 500,000–1,000,000 square feet: nine blocks
· 1,000,000+ square feet: seven blocks
Of the seven available blocks of space greater than 1 million square feet, five of them are new development scheduled to be completed between 2017 and 2020.
Midtown has the most large block availabilities with 52 in total—41 existing spaces and 11 development sites. Downtown has the second most, totaling 16—14 existing blocks and two development sites. Midtown South has the fewest opportunities with only seven—five existing spaces and two development sites. The Sixth Avenue/Rock Center submarket has the highest number of large blocks available with 13 existing spaces, followed by Grand Central with 12—two of which are under construction. The World Trade submarket has nine—two of which are development sites.