Quote:
Originally Posted by BrownTown
The current pace of construction is unsustainable. We're very likely to see a recession in the next 5 years which will slam the breaks on these projects that haven't started yet when it hits. Unfortunately the economic boom we're experiencing now isn't going to last forever.
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The pace of new office construction has more to do with New York's lack of new product and lease expirations. I do expect a slowdown in construction at some point, but New York's outdated stock isn't getting any younger. Those looking for large footprints or consolidations into single, modern office towers would likely continue. This particular tower is the rare "boutique" office tower, looking for top of the line tenants who won't need the massive space like the big boys. But the biggest threat to continued development is lack of development space. Hudson Yards is building out rapidly, faster than City projections. That's why I'm glad the Midtown East rezoning is moving forward as planned. This tower is the poster child for what can be done to breathe new life into Mew York's older business districts.
Anyway, it may seem like an extraordinary amont of new construction, but whrn we compare it overall, it's a relatively small amount of turnover. A decade from now they'll still be talking about shortage of space.