OFFICE MARKET OUTLOOK: 2001 Looks Positive Across the US

NEW YORK CITY-As 2001 approaches and the equity markets show signs of a soft landing, a hard landing or perhaps an outright recession, the market for office space remains positive. Below are snapshots of what can be expected in the office sector for 2001 in several major markets.

In New York City, the booming job market, (7,800 jobs were added in the private sector just in November) is one of the drivers of the office market. During 2000, available space fell by about half to 3.5% in Midtown, to 4.3% Downtown and slightly (to 5.3%) in Midtown. Average asking rents rose to an all-time high in Downtown, dipped slightly in Midtown, and came near an all-time high in Midtown after a small slump in October.

Development of new office buildings continues to be strong. A visitor to Times Square might assume there was no more room for yet another skyscraper, but they’d be mistaken. Boston Properties has announced that it will put up Times Square Tower on 42nd Street between Sixth Avenue and Broadway. The company is also erecting 5 Times Square, which it has leased entirely to Ernst & Young.