NEW YORK CITY- Manhattan office tenants are prioritizing outdoor space at the top of their amenity list, and landlords are taking note as they dedicate portions of their building to outdoor single-floor terraces and landscaped rooftops to accommodate the demand.
The desire for outdoor space did not spring up overnight. New construction and development have fueled this trend, with 79% of Manhattan office buildings built since 2010 or under construction featuring outdoor space, according to a recent CBRE Manhattan Market Flash report.
While newer properties have outdoor space incorporated in their blueprint, existing landlords are leveraging outdoor space to lure potential tenants, upgrading setbacks and vacant rooftops into roof decks and garden terraces, which is incorporated into their capital improvement efforts, according to Nicole LaRusso, CBRE's director of research & analysis for tri-state, and author of the report.
"Office-dwellers love being able to go outside – year-round – and landlords are eager to provide this amenity," LaRusso tells GlobeSt.
There is a significant payoff for outdoor space that is not only in high demand but uncommon. Only 27% of Manhattan office buildings offer outdoor space, and with the high demand layered on top of limited supply, office floors with a private terrace generate higher premiums, roughly 14% over non-terrace floors.
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
