THE NEW YORK CITY ECONOMY has not only kept pace with the national rebound; it has exceeded the U.S. measures throughout this decade. The most recent data, through the 2nd Quarter of 2016, shows New York outpacing the U.S. Gross City Product growth this year 1.7%, versus the national 1.2% rate in the second quarter. The City however, had stunning results in the prior three quarters, growing at 3.2% and 3.1% in the third and fourth quarters of 2015, and at 4% in the first three months of 2016.
Bradford Allen is pleased to share with you our 2016 third quarter market report.This quarter in the downtown market: • Absorption for the quarter reached 806,000 square feet • Rental rates dropped a nominal $.09 to $36.14 • Vacancy dropped to 11.5% • Two companies, Duracell and Wilson Sporting Goods, announced that they will be moving their offices to downtown Chicago
To no one’s surprise the first half of 2016 was a rough period for the Oklahoma City office market. The market’s vacancy rate increased from 12.3% to 14.8% and the market suffered negative absorption of 179,000 square feet. The Mid-Year 2016 report is yet another lagging economic indicator of where the state’s economy and particularly the state of the petroleum industry currently stands.
Despite layoffs and bankruptcies in the oil and gas sector driven by drastically lower crude oil prices, The Oklahoma City multi-tenant industrial market is reporting lower overall vacancy than at this time in 2015.
The retail market is better than it seems like it should be. Given the continued layoffs & bankruptcies in the energy market, declining sales tax revenues, and general economic uncertainties, the expectation would be that the Oklahoma economy and the retail market would be in a recession. But, leasing activity, development and interest in our market remain strong.