JLL: Prime office market conditions to favour landlords in New York City through 2016
In its Global Market Perspective report for Q315, Jones Lang LaSalle (JLL) notes that the notional capital values of prime office buildings in New York City have risen by 21.2% over the last year. The prime yield is 3.3%, or a 0.97% premium to the yield on 10-year government bonds. Over the last year, rents have risen by 2.5% and net absorption (on a rolling one year basis) has been 1.4%. The vacancy rate is currently 9.7%. Taking into account completions of new projects prior to the end of 2016, the supply pipeline is 0.9% of current stock. JLL considers that conditions will likely favour landlords in 2016.
Source : November 2015/JLL/New York City/OFF