Spotlight: New york
higher education is leading the way for new york state. the industry was re-
sponsible for $62.2 billion in econoMic activity in new york in 2009, according
to a report froM state coMptroller thoMas p. dinapoli.
In addition, the educational-and-health-services employment sector is one of the few adding jobs in
the state. It gained 18,000 positions between August 2009 and this past August, according to the New
York State Department of Labor.
With 269 colleges and universities, New York has the third-largest overall education sector in the nation. Steady growth in the sector has lead to new developments springing up throughout the state.
This past September, work began on a new $46 million Educational Opportunity Center for the State
University of New York at Buffalo. In Rochester, a $13.1 million federal grant is helping fund a $35 million facility that will house Rochester Institute of Technology’s Golisano Institute for Sustainability, according to the Democrat and Chronicle.
Manhattan Office Market
MANHAT TAN OFFICE VACANCy RATES AND ASKING RENTS
Vacancy rates for the overall Manhattan office market declined for
the third straight quarter, hitting
12.1 percent this past third quarter,
according to a report from Jones
Lang LaSalle. The market is on pace
to end the year with positive absorption for the first time since 2007, the
Average asking rents showed a
modest increase from this past second quarter to this past third quarter, inching up from $52.08 to $52.21 per square foot.
Source: Jones Lang La Salle
Sales volume, however, is beginning to pick up, Jones Lang LaSalle says. Total closed and under-
contract transactions of more than $10 million totaled $7.5 billion from the beginning of this year
through this past third quarter, a significant increase from the $3.5 billion ’09 annual total.
Industry Focus: Hospitality
The hotel market in New York state is on the rebound. The leisure and hospitality sector gained 24,600
jobs between August 2009 and this past August, the largest increase by any sector, according to the
New York State Department of Labor.
Hotel occupancy rates statewide also increased 8. 4 percent from the first half ’09 to this past first half,
according to Smith Travel Research. Room rates increased by 8 percent from the second quarter of ’09
to this past second quarter, netting the state the highest average price per room in the country, according to the Hotels.com Hotel Price Index.
These increases have led to the construction of new hotel properties, with three projects already under
way in Manhattan alone, according to Commercial Property Executive.
New York state’s unemployment rate
has nearly mirrored the national average, though it recently decreased
to 8. 3 percent this past August from
its spike to 8.8-percent in August
’09, according to U.S. Department of
The Empire Center for New York State
Policy reported this past October
that, between 1993 and 2007, the
state had a net job loss of 148,000
because of corporate relocations. In
that same period, the state’s job-growth rate was 1.7 percent — coming in at 43rd out of 50 states.
Sources: U.S. Department of Labor
New York City, however, has added 90,000 jobs since December ’09, according to The New York Times.
3 Cities to Watch
The Albany Nano Tech complex is quickly becoming a
high-tech magnet for the city. This past October, Se-matech, an international consortium of semiconductor manufacturers, announced its relocation to the
site. The State University of New York at Albany also
is expanding its nanotechnology research center at
the site, which is projected to create more than 1,250
high-tech jobs, according to The Business Review.
Buffalo’s normally stable commercial market currently faces some uncertainty. One HSBC Center
tower, a dominant figure in the city’s skyline, may
lose its two major tenants — HSBC Bank USA and
the Phillips Lytle LLP law firm. Local officials are
urging the companies to move to the Canal Side
project instead, according to The Buffalo News.
Mayor Robert Duffy is leading the charge to revitalize Rochester’s downtown with the Midtown Rising
project. Located at the site of the former Midtown
Plaza, the project aims to turn the nearly 9-acre site
into a mixed-use development anchored by PAE TEC
Communications’ world headquarters and the Midtown Tower, which will include residential and retail
space. Demolition started this past September.
“In New York City, there’s strong demand for
office, residential and retail properties. We have
a large imbalance between supply and demand.
There’s a tremendous amount of capital seeking
to make investments in New York City.”
NE W;YORK;CAPI TAL;MARKE TS;GROUP,;JONES;LANG;LASALLE
sources: Bizjournals.com, The Buffalo News, The (Albany) Business Review, City
of Rochester, Commercial Property Executive, Democrat and Chronicle, Empire
Center for New York State Policy, Hotels.com, Jones Lang LaSalle, New York State
Department of Labor, New York State Hospitality & Tourism Association, The New
York Times, Office of the New York State Comptroller, Rochester Business Journal,
Smith Travel Research, Times Union, U.S. Department of Labor