NEW YORK CITY—DTZ says it is not surprised tosee negative absorption in Manhattan for the first quarter of 2015,calling it a familiar trend during the ongoing recovery, which hasrepeated itself for the last three years.
The strength of the market, however, has led to positiveabsorption by the end of each of those years, which will likely bethe case in 2015 as well. The negative absorption can mostly beattributed to 33 buildings adding more than 45,000 square feet tothe market, which led to a 50-basis-point-jump in the availabilityrate to 9.8%.
For the quarter, 1.7 million square feet of negative absorptionwas posted. In the first tree months of the year. The bulk of theincrease in supply was in the class B market, as it accounted for15 of the 33 buildings each with greater than 45,000 square feetadded to the market and totaled over 1.2 million square feet ofnegative absorption.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
