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Marketbeat: Office Snapshot
Marketbeat: Office Snapshot
Marketbeat: Office Snapshot
OFFICE SNAPSHOT
BINGHAMTON, NY
A Cushman & Wakefield Alliance Research Publication
Q4 2012
ECONOMIC OVERVIEW
The economic malaise that continues to grip the country is very much in evidence in the Binghamton market. The December 2012 unemployment rate in the Binghamton MSA stood at 8.8%, up from 8.3% at the end of 2011. Private sector employment dropped by 200 over the year, reversing a gain of 1,400 jobs in 2011. Manufacturing jobs are at the lowest level recorded over the period 1990 to 2012. Binghamton continued to experience plant closures and rolling layoffs in the quarter including announcements of two plant closures, totaling over 100 workers. Consumer confidence in the Binghamton region moved up sharply from a low of 56.8 in the fourth quarter of 2011 to a high of 72.6 in the fourth quarter of 201 but remained among the lowest in the state. Prices and sales were down in the Binghamton housing market for the quarter in contrast to the state; for the year overall, the market sales increase of 7.6% kept pace with the state average of 7%.
annual economic impact of the University is close to one billion dollars. Market growth is also coming from the health care sector, including a new 85,000-sf medical office building opened earlier in 2012 and a 58,000-sf office under construction at a former industrial flex building. There is still opportunity for industrial market growth, job creation and significant local revenues from the permitting of natural gas drilling in the Marcellus shale formation which has the greatest potential in the Southern Tier. The permitting process in New York remains stalled at the state level. STATS ON THE GO
Q4 2011 Overall Vacancy Direct Asking Rents (psf/yr) YTD Leasing Activity (sf) 14.7% $12.74 50,755 Q4 2012 13.8% $12.24 95,800 Y-O-Y 12 MONTH CHANGE FORECAST -0.9pp -3.9% 88.7%
psf/yr
OUTLOOK
Improvement in the stagnant Binghamton market may come from several sources. The Southern Tier Regional Economic Development Council was designated a top performer in December and awarded $91.1 million for 62 projects, including $2.5 million for community revitalization and $7 million toward the construction of a $22-million high tech incubator downtown by Binghamton University. BUs other projects include the development of a $70-million Smart Energy Research Center with the potential to create 840 jobs; a five year increase in enrollment of 2,000, and plans to hire 150 new faculty. Completion of 600 student housing beds in the City with plans for more by private developers is creating new demand downtown. The
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USER SALES ACTIVITY
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LEASING ACTIVITY
Pyramid Brokerage Company 84 Court St. , Suite 300 Binghamton, NY 13901 www.cushmanwakefield.com/knowledge
For more information, contact: Maureen Wilson, President 607 754 5990 Mwilson@pyramidbrokerage.com
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. 2013 Cushman & Wakefield, Inc. All rights reserved.