Cushman & Wakefield has released its annual Not-For-Profit & Public Sector report, which summarizes trends and transactions involving real estate and office portfolios for those industries in the region. The full report is linked here.
Key takeaways from the yearly research and analysis include:
- 2018 not-for-profit and public sector lease & investment activity in New York City finished at 9.3 msf—6.8% below 2017’s record of 10.0 msf
- Leasing in 2018 was defined by robust activity in the education industry, which accounted for 30.8% of the total sector’s leasing
- Leasehold condominiums, a transaction structure which allows not-for-profits to be exempt from paying real estate taxes, continue to be a popular option—two of the preeminent transactions during the past year include Mercy College at 2 Herald Square and Community Preservation Corporation at 220 East 42nd Street
- Despite signing no new leases in 2018, religious organizations were active in the investment sales market, participating in 80 of the 158 not-for-profit or public sector transactions that took place throughout New York City
- 2019 trends to watch, including the majority of public sector organizations striving to remain in Manhattan aside from entities fulfilling program needs in the Outer Boroughs.
