377 Broadway

Property description:

Office space for lease in Manhattan

The entire second fl of approximately 8000sf.  Currently built as offices, the spaces consists of open areas, private offices, conference rooms, training spaces, break room and IT spaces.

The space can be split into two 4000 sf spaces.

Area Property Description:

Welcome to NY City's - City Hall SubMarket

Government agencies account for most of the submarket’s largest tenants, lending stability to this area’s office market. The submarket’s vacancy rate has remained within a 500-basis-point range since 2000, compared with nearby FiDi, where vacancies have fluctuated within a near 900-basis-point spread.

The list of government agencies here—which already includes the Department of Buildings, the New York City Council, the Department of Justice, and others—continues to grow. In September 2017, the city Department of Finance took more than 180,000 SF at 375 Pearl Street (the former Verizon Building). In July 2018, New York Human Resources took 193,000 SF in the same building. With the city’s full-time employment roll at its highest level on record and its agencies in the market for around one million SF in Downtown Manhattan, City Hall seems poised for an uptick in absorption—although competition from newer, more efficient product south of Murray Street and across the East River could pose headwinds.

Supply has been constricted throughout this cycle. The inventory has shrunk, as conversions to other uses such as multifamily have proven popular. The submarket has been one of the top performing areas in New York in terms of rent growth this cycle. Asking rents are more than 25% above their prerecession peak, but growth has slowed more recently. Rent growth is virtually flat since the start of 2017, despite continued occupancy gains. A rash of speculative construction in Manhattan set to deliver over the next couple of years has limited rent growth throughout much of the borough. Less volume trades here compared with most Manhattan submarkets. City Hall contains fewer private sector tenants and 4 & 5 Star properties compared with many nearby submarkets, limiting the potential for premier investment activity.

Source: CoStar