Next Stop: Penn Station

Key Findings

• Competitive Submarkets: office relocations have been increasingly concentrated within five submarkets that have averages asking rents above the Manhattan averages and vacancies below
• Relocation Hub: Penn Station has captured nearly a quarter of relocated square feet across Manhattan
• Steady Absorption: Penn Station has expanded its inventory exponentially over the past decade due to new developments and renovations, yet the vacancy remains in the single digits across this newer product
• Magnet for High-Value Industries: Financial services, professional services, technology, and media & information firms represent more than three-fourths of incoming square feet, reinforcing Penn Station’s role as an emerging office cluster
• Expansion Oriented Tenant Behavior: Tenants relocating into Penn Station are expanding far more than expansion trends across the rest of Manhattan
• Positioned for Long-Term Growth: With additional projects in the development pipeline, Penn Station is well positioned to remain a primary destination for growth-focused office users