In the New York City commercial market, the vast majority of office users lease their space rather than own. However, in the United Nations submarket, office ownership is far more prevalent. In fact, nearly half of all Missions and Consulates in New York City own their office space.
Facts about the Missions and Consulates in New York City:
• There are 193 Missions and 112 Consulates.
• In total there are 305 offices, the majority of which are located in the United Nations submarket.
• 150 of the 305 Mission and Consulate offices are owned, equating to 49% office ownership. The offices are typically a small building townhouse or an office condominium.
The governments which own their office space reap the long-term benefits of real estate ownership. These benefits include:
• Governments are exempt from paying real estate taxes when they own, but not when they lease.
• Owning secures a permanent office location and the owners can never be displaced.
• Owning, rather than leasing, demonstrates a commitment to the United Nations.
GOVERNMENT OWNERS
Missions and Consulates that are currently leasing their offices should consider the following:
• According to CoStar's Third Quarter 2015 Office Report, the United Nations submarket has an average quoted rental rate of $66.31 per square foot. The annual cost of leasing in the United Nations submarket is approximately 85% higher than the annual cost of ownership.
• CoStar reports that there is a mere 3.5% vacancy rate in the United Nations submarket, one of the lowest citywide vacancy rates. Due to the low vacancy rate, in the event a Mission or Consulate has to relocate at the expiration of its lease, it may have a difficult time finding suitable office space within the submarket.
• On average, real estate taxes are over $10 per square foot. Governments are exempt from paying real estate taxes when they own but not when they lease.
866 UNITED NATIONS PLAZA
The office condominiums at 866 United Nations Plaza offer Missions and Consulates, non-profits and businesses an exceptional opportunity to secure a permanent office in a highly prestigious building located only steps from the United Nations Headquarters.
The newly converted 866 United Nations Plaza consists of over 471,000 square feet of Class A office condominiums, with units for sale ranging from under 1,000 square feet to over 50,000 square feet. Office condominium ownership at 866 United Nations Plaza allows office condominium owners to lock in their occupancy costs and insulate themselves from the ever-rising expense of office leasing in Midtown Manhattan.
