Professional Documents
Culture Documents
Marketbeat: Office Snapshot
Marketbeat: Office Snapshot
Marketbeat: Office Snapshot
OFFICE SNAPSHOT
BINGHAMTON, NY
A Cushman & Wakefield Alliance Research Publication
Q2 2012
ECONOMIC OVERVIEW
The Binghamton economy is slowly recovering from the economic downturn of the past several years, and the devastating flood of September 2011 that had a huge economic impact on the area. Early estimates from the New York State Department of State put damages in Broome County at $435.6 million and Tioga County at $279.6 million. While private sector employment experienced modest gains in the region year over year, the total employment number remains at a 20 year low. Manufacturing and government jobs are still shrinking and unemployment is increasing as more job seekers reenter the work force, bouncing back to 8.7% in June. Consistent with national trends, growth in manufacturing activity ground to a halt in June across New York State. Consumer confidence in the Binghamton market remains low compared to national and statewide measurements. While this indicator of economic well being has climbed almost ten points over the past year, it slid .1% in the second quarter. At 65.8, it remains among the lowest in the state, reflecting a prevailing pessimism among area residents. In the broader real estate market, Broome County housing sales run counter to the statewide pattern on a year to date basis with statewide sales up 11.8% over 2011 and prices holding steady, while local sales are down 8.8% and median prices have spiked 18.7%. In more rural Tioga County, sales and prices have edged upward.
OUTLOOK
Despite deceleration in the national economic recovery, the local outlook is for improved activity in the office sector and decreasing vacancy. Several significant leasing and sales transactions initiated in the first half of 2012 should be consummated by the fourth quarter. In addition an 85,000 square foot medical office building built by the area's largest hospital is nearing completion. Despite continued layoffs in the industrial sector, there are indications that growing businesses have requirements for additional office space.
STATS ON THE GO
Q2 2011 Q2 2012 Y-O-Y CHANGE 12 MONTH FORECA ST
Overall Vacancy Direct Asking Rents (psf/yr) YTD Leasing Activity (sf)
psf/yr
0.01 0.00
2010 LEASING ACTIVITY Pyramid Brokerage Company 84 Court Street; Suite 300 Binghamton, NY 13901
www.cushmanwakefield.com/knowledge
The market terms and definitions in this report are based on NAIOP standards. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. 2012 Cushman & Wakefield, Inc. All rights reserved.
2011
2012 YTD