City hits new high in office jobs

The city reached a record number of office jobs in 2016, according to a report released on Monday by state Comptroller Thomas DiNapoli.The city has over 1.5 million office workers, more than a 100,000 above the previous peak during the economic boom that...

City hits new high in office jobs

The city reached a record number of office jobs in 2016, according to a report released on Monday by state Comptroller Thomas DiNapoli.

The city has over 1.5 million office workers, more than a 100,000 above the previous peak during the economic boom that crested in the year 2000. The city reached nearly 1.4 million office jobs in 2007, about 150,000 short of the current level.

The job growth has been driven by employment gains primarily among tech, advertising, media and information companies, a group commonly referred to by the acronym TAMI. TAMI firms, along with business services companies like law and accounting firms, drove about 87% of the 202,000 office jobs that have been added in the city since the end of the recession in 2009, according to the report.

article continues below advertisement “The city’s economy is doing well and it has become a magnet for a lot of tech and TAMI tenants,” said Kenneth Bleiwas, the state’s deputy comptroller. “TAMI has been the big driver. It’s an industry that thrived under Mayor Michael Bloomberg and that has continued to grow.

As jobs have grown, developers have seen the opportunity to add more office space. DiNapoli’s report found that the city’s stock of office buildings has also reached a record size; encompassing about 550 million square feet. That growth has been driven by projects like Hudson Yards, where several brand new office towers are on the rise, and the redevelopment of the World Trade Center site.

The additional office space, combined with widespread efforts among tenants to consolidate more of their operations into less square footage, has blunted the ability of landlords to raise rents based on the uptick in jobs.

The report found that vacancy has fallen only modestly from nearly 13% during its most recent peak in 2009 to roughly 10%. Rental rates have reached $71.70 per square foot on average, 25% higher than their recessionary low, but less than previous market peaks such as in 2007.

NYC office jobs and space by crainsnewyork on Scribd

The city reached a record number of office jobs in 2016, according to a report released on Monday by state Comptroller Thomas DiNapoli.

The city has over 1.5 million office workers, more than a 100,000 above the previous peak during the economic boom that crested in the year 2000. The city reached nearly 1.4 million office jobs in 2007, about 150,000 short of the current level.

The job growth has been driven by employment gains primarily among tech, advertising, media and information companies, a group commonly referred to by the acronym TAMI. TAMI firms, along with business services companies like law and accounting firms, drove about 87% of the 202,000 office jobs that have been added in the city since the end of the recession in 2009, according to the report.

article continues below advertisement “The city’s economy is doing well and it has become a magnet for a lot of tech and TAMI tenants,” said Kenneth Bleiwas, the state’s deputy comptroller. “TAMI has been the big driver. It’s an industry that thrived under Mayor Michael Bloomberg and that has continued to grow.

As jobs have grown, developers have seen the opportunity to add more office space. DiNapoli’s report found that the city’s stock of office buildings has also reached a record size; encompassing about 550 million square feet. That growth has been driven by projects like Hudson Yards, where several brand new office towers are on the rise, and the redevelopment of the World Trade Center site.

The additional office space, combined with widespread efforts among tenants to consolidate more of their operations into less square footage, has blunted the ability of landlords to raise rents based on the uptick in jobs.

The report found that vacancy has fallen only modestly from nearly 13% during its most recent peak in 2009 to roughly 10%. Rental rates have reached $71.70 per square foot on average, 25% higher than their recessionary low, but less than previous market peaks such as in 2007.

NYC office jobs and space by crainsnewyork on Scribd

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