Of the 22 buildings and 29.1m sq ft of office space damaged in New York, more than half will be repaired and ready for occupation within 3-12 months.
But, according to a report on the New York office market, it will take over five years for the city’s inventory of office space to return to its pre-disaster level.
The report, by agent Grubb & Ellis, describes the city’s office market as “tight as a drum” and predicts that rents will rise, despite an agreement from landlords to hold rents constant at pre-disaster levels.
“We think office rents in New York City are likely to rise during coming months, even as the US economy slips into recession and office rents in other markets edge down,” the report states.
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WTC relocations |
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Office rents in New York are expected to rise in the coming year |
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Occupier |
Sizes (sq ft) |
Relocated to |
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American Express |
681,000 |
Three deals in New Jersey & Connecticut |
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Bank of New York |
229,000 |
330 West 34 Street |
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79,000 |
111 Eighth Avenue |
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Lehman Bros |
175,000 |
70 Hudson, Jersey City |
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Hartford Fire Insurance |
145,000 |
2 Park Avenue |
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US Customs |
118,000 |
2 Penn Plaza |
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Thacher Profitt &Wood |
100,000 |
11 West 42nd Street |
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Zurich-American Insurance Gp |
95,000 |
601 West 26th Street |
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Source: Insignia ESG |
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