After suffering the negative impact of the financial recession, the city of New York seems to be back on track with regards to economic and business growth. In particular, the borough of Manhattan is considered the economic engine of this US city. For decades, Manhattan has enjoyed a reputation for being one of the world’s top business locations thanks to positive factors like the relatively low cost of doing business and a highly skilled and educated workforce. All these factors impact the commercial real estate market. To learn more, read through our overview of the local commercial property market and through our insights into the office sub-sector.

An overview of the Manhattan commercial property market

Even during the worst of the recession, the real estate market in Manhattan experienced below-average decline rates. Low unemployment rates have helped keep the local commercial property market healthy, and in fact, 2014 was consider a banner year for the real estate market in Manhattan. A New York Times article affirmed that the recent market rebound has brought transaction levels very close to pre-2008 rates, mainly thanks to the strong performance of the retail and office sub-sectors.

Since 2012, nearly 60,000 new jobs have been created in and around Manhattan, with the vast majority of them being office based. This fact has been consistently boosting demand for suitable office space, generating opportunities for increased activity levels and for the creation of new office developments. In addition, in July 2014 real estate analysts predicted that within the following two years, more than 1.55 million square feet of brand new retail space would be delivered within the boundaries of Manhattan, mainly around Fulton Street and South Street Seaport.