Vacancy Rate of 25% Reported in New York Telecom Space

NEW YORK CITY-The New York City telecom real estate market is healthier than the rest of the nation’s, but increased sublease space and new construction could drive down prices unless the economy recovers sooner and stronger than expected.

Third-quarter figures compiled by Grubb & Ellis reveal a 25% vacancy rate in existing telecom space in the New York City market and a 28.8% rate in Northern and Central New Jersey. The national vacancy rate is 38%.

Telecom space is defined as 75% dedicated to telecom use, which includes data centers, co-location facilities and web hosting facilities. The buildings house a very low number of employees and entail special attributes include enhanced security and power sources, fiber connections and climate control.