Will One World Trade Center Be Full When It Opens? No, Say Most Real Estate Executives, Predicting SSeptember 3, 2014
Professionals Are Split on Whether South Street Seaport Will Rebound, According to Marks Paneth Survey of NY Commercial Real Estate Executives
NEW YORK, NY--(Marketwired - September 03, 2014) -
Will One World Trade Center be full when it opens this year? No, say the vast majority of New York commercial real estate professionals. They expect the new complex will be less than 80 percent occupied at launch, according to a survey of 100 top-level New York City real estate executives, including owners, brokers, agents, engineers and accountants and lawyers specializing in the commercial space.
While One World Trade Center won't be the "Empty State Building" (the nickname given to the Empire State Building when it opened in 1931 to low occupancy rates in the midst of the Great Depression), or even the original World Trade Center (which was not full until 1979, seven years after completion, and even then was helped by Port Authority rent subsidies) growth at the new complex is expected to be slow, according to the Summer 2014 Gotham Commercial Real Estate Monitor survey by accounting firm Marks Paneth.
Four out of five executives are sure the building will be less than 80% occupied before it opens this year. A majority (58%) think it will be three to five years or more before One World Trade Center can lease 90% of its office space.
"The occupancy of One World Trade Center will be a slow build, a bit like the first World Trade Center. But it will certainly grow faster than the Empire State Building, which wasn't fully occupied for almost 20 years," said William H. Jennings, Partner-in-Charge of the Real Estate Group at Marks Paneth.
The survey shows that real estate executives are split about another Lower Manhattan development question: Will new developments revitalize the struggling South Street Seaport area? Many (42%) are certain the new projects are enough to revive the area as a sustainable retail hub, but many others (41%) hedge, saying "it's too soon to know." Only 15% are convinced the development won't be enough to bring the Seaport back.
To receive a copy of the Summer 2014 Marks Paneth Gotham Real Estate Monitor and/or to speak with a leader from Marks Paneth's Real Estate Group, please contact Katarina Wenk-Bodenmiller of Sommerfield Communications, Inc. at Katarina@sommerfield.com or 212-255-8386.
The Gotham Commercial Real Estate Monitor from Marks Paneth represents the findings of a survey of commercial real estate professionals in the New York City market. The 100 professionals participating in the research include owners and managers of commercial property, commercial real estate brokers and agencies, and attorneys and accountants specializing in the sector. The research employed self-administered questionnaires completed online by respondents. The list of professionals surveyed was compiled by Marks Paneth LLP, the research sponsor, and by Michaels Opinion Research. Interviews were completed during the period of June 17 through July 11, 2014.
About Marks Paneth LLP
Marks Paneth LLP is an accounting firm with over 500 people, of whom approximately 65 are partners and principals. The firm provides public and private businesses with a full range of auditing, accounting, tax, consulting, bankruptcy and restructuring services as well as litigation and corporate financial advisory services to domestic and international clients. The firm also specializes in providing tax advisory and consulting for high-net-worth individuals and their families, as well as a wide range of services for international, real estate, media, entertainment, nonprofit, professional and financial services, and energy clients. The firm has a strong track record supporting emerging growth companies, entrepreneurs, business owners and investors as they navigate the business life cycle.
The firm's subsidiary, Tailored Technologies, LLC, provides information technology consulting services. In addition, its membership in Morison International, a leading international association for independent business advisers, financial consulting and accounting firms, facilitates service delivery to clients throughout the United States and around the world. Marks Paneth LLP, whose origins date back to 1907, is the 33rd largest accounting firm in the nation and the 10th largest in the Mid-Atlantic region. In addition, readers of the New York Law Journal rank Marks Paneth as one of the area's top forensic accounting firms for the fourth year in a row.
Its headquarters are in Manhattan. Additional offices are in Westchester, Long Island and the Cayman Islands. For more information, please visit www.markspaneth.com.
Sommerfield Communications, Inc.