PowerPoint Presentation

NYC Office Fundamentals Short U Scenario

18%

15

Key Points

16.7%

15.8%

15.1%

16%

MSF

14.6%

• Overall Manhattan vacancy was already rising, hitting 11.1% in 2019 • Direct Class A vacancy was 8.2% in 2019 and rises more sharply than the overall market • In 2020, the Short U impact pushes vacancy to 15.1%, and in 2021, to 16.7% • 2021 Q2 is the peak for both overall and Class A vacancy

10

14%

14.5%

12.9%

5

12%

10%

0

8%

-5

6%

4%

-10

2%

-15

0%

2015

2016

2017

2018

2019

2020

2021

2022

New Supply

Net Absorption

Overall Vacancy

Class A Vacancy

Source: Cushman & Wakefield Research Asking rents are gross, all classes, per square foot. Vacancy and rent growth are annual average % (changes) versus year-end. Class A figures are for direct space only.