New office construction in NYC continues multi-year decline
Plans for the development of new office buildings has significantly declined each year since 2019, according to an analysis of plans filed with the city’s Department of Buildings. From 2019 through last year, the total square feet for ground up office building construction declined sharply each year, dropping 48 percent from 2019 to 2020 and 31 percent from 2020 to 2021. Last year, from January through April, plans were filed for 828,421-square-feet of office space. Meanwhile, total construction for new office buildings over that same period has totaled 528,561-square-feet.
PincusCo looked at all new building plans filed with the NYC Department of buildings which called for the construction of office buildings (Occupancy B) that were 5,000-square-feet or larger.
The most significant plans this year were filed by Real Estate Equities Corporation on April 21. The plans called for construction of a 72,441-square-foot mixed-use commercial office building at 156 Bowery in Nolita, Manhattan.
According to the plans, the ground floor of the building will have a cafe, retail space, and office space. The second floor will have office space and a terrace. Floors three through six will all be used for office space. The seventh floor will have accessory areas. The roof will have a terrace.
REEC did not immediately respond to a request for comment.
Among the most significant office plans from last year was Rabina Properties’ plans for a 98-unit, 452,134-square-foot mixed-use building at 520 Fifth Avenue in Grand Central. According to the plans, a significant portion of the building (including all of floors four through 28) will consist of office space. Additionally, CBSK Ironstate, on January 7, filed a permit application for construction of a 98,788-square-foot office building at 360 Bowery in Noho.