PowerPoint Presentation

NYC Office Fundamentals Short U Scenario + Coworking Stress

20%

15

Key Points

18.4%

17.8%

18%

16.2%

MSF

10

• Manhattan vacancy was already rising, reaching 11.1% and 8.2% in 2019 for overall and Class A, respectively • In 2020, the Short U impact pushes vacancy to 16.2%, and in 2021, to 18.4%, with Class A following a similar trajectory • 2021 Q2 is the peak for vacancy but overall vacancy remains over 18% and Class A over 15% until 2021 Q4

15.7%

16%

15.8%

13.6%

5

14%

12%

0

10%

-5

8%

6%

-10

4%

-15

2%

0%

-20

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.