Businesses obviously hope that New York City office rents come down but, why would such a decline occur?
If office rents were to come down in NYC perhaps the reason could be described in just one phrase, ‘Supply and Demand‘!
The fact is that New York City will experience a huge amount of new office inventory that is or that will be hitting the marketplace in the near future to the tune of 30 million square feet.
In order for that volume to be absorbed you would assume that either demand has got to rise or that renters have got to be enticed whether through lower rents or landlord concessions.
At this point in time, however, Frank Wallach who is the senior director for research at Colliers International, does not see a problem with sustainable rents as you can read in the section below titled ‘Office Building Boom’! (Infographic Source)