Manhattan been New York City’s most successful borough for a quite some time. One of the reasons for Manhattan’s success is its ports and trade businesses. Along with the incoming and outgoing trade, there are the associated business that pop up such as customs brokers and trade agents. Thanks to its seaports, Manhattan has always had a strong financial foundation to rely on.

Manhattan is also known for its skyscrapers and dynamic downtown region. The terrorist attacks of September 11, 2001 destroyed the World Trade center and its iconic Twin Towers. But in place of the destruction, another iconic Manhattan office complex has risen and stands as a testament to the durability of the Manhattan economy. With so much going for it at any given time, it is easy to understand why people are so excited about the economic future of Manhattan.

Main Economic Drivers In Manhattan

The seaports are always alive with activity, but the main economic driver in Manhattan is its downtown real estate. When the real estate values in Manhattan fell in 2011, the area experienced a financial challenge that saw a major part of its economy go stagnant. But as downtown property values increase, so do the fortunes of the Manhattan economy.

Another economic driver for Manhattan has been the significant success of the Start-Up NY campaign. This is an initiative by New York State to entice technology and medical start-ups to base themselves in New York State colleges and other parts of the state. The result has been a significant increase in technology companies in Manhattan’s downtown office spaces and this new influx of business is driving up the real estate prices.

Major Industries And Employers In Manhattan

The primary industry in Manhattan is the professional services industry, which consists of medical and technology services. A full 16 percent of all employed Manhattan residents work in the professional services industry, and the success of the Start-Up NY campaign has insured that this part of the Manhattan economy will only continue to grow.

The second leading industry in Manhattan is the financial services sector. This particular industry has been dominant in Manhattan for years and owns many of the more prominent buildings in the downtown area. Some of the major financial organizations that are headquartered in Manhattan include American Express, AIG, Bank of New York and Bear Stearns. The presence of the New York Stock Exchange in downtown Manhattan helps to insure that the financial industry will continue to dominate the Manhattan business landscape.

Business Funding Opportunities In Manhattan

Because it is one of the financial capitals of the world, Manhattan has plenty to offer in the way of financial resources for businesses of all sizes and types. But the Start-Up NY campaign has established itself as a major source of funding for new companies in Manhattan. The funding arm of this campaign actually includes several companies based in Manhattan, which makes it easier for lenders to reach local businesses.

Average Cost Of Office Space In Manhattan

The influx of start-ups in Manhattan has had an effect on average rents for class A and class B office properties. The start-ups that do not base themselves on a New York university campus are grabbing up all of the class B properties, and that is driving up the class B rents.

The average rental cost for class B office space in Manhattan is around $55 per square foot. The gap between the average cost for class B and class A spaces is closing as the class A spaces try to take advantage of the new revenue that is available. The average cost for class A office space in Manhattan is around $75 per square foot, and that is on a downward trend for the foreseeable future.

Highest And Lowest Office Rents In Manhattan

Anyone with experience in the Manhattan real estate market knows that Park Avenue is where all of the high-priced real estate is located. The highest office space rent in all of Manhattan can be found at 200 Park Avenue where tenants are paying rents that are in the $95 per square foot range.

Manhattan is a big city, and the commercial property owners are getting very creative on how they are pricing their class B office real estate. The most inexpensive office spaces in Manhattan are loft offices in the West 21st Street district that are starting at $4.80 per square foot. The offices are shared and tend to offer smaller spaces, but they  provide the prestigious Manhattan address that many of the new start-ups are looking for.

For additional information on office space availability on Manhattan click here.

Further reading: New York City’s Central Business Districts

Resources:

http://www.easternconsolidated.com/manhattan-economic-indicators

http://www.city-data.com/work/work-Manhattan-New-York.html

http://startup.ny.gov/

http://www.nycedc.com/program/lower-manhattan

http://www.ranker.com/list/companies-headquartered-in-new-york/the-working-man

http://therealdeal.com/blog/2013/10/01/manhattan-leasing-strong-in-q3-midtown-market-stratifies/

http://therealdeal.com/wp-content/uploads/2013/05/MVPLeasesChart1.gif

https://42floors.com/office-space/us/ny/new-york