BINGHAMTON, N.Y. — The vacancy rate in the Binghamton office real-estate market declined nearly half a percentage point during 2015.
The rate fell from 10.6 percent overall in the fourth quarter of 2014 to 10.2 percent in the same quarter in 2015, according to the “Office Snapshot Q4 2015” report from Pyramid Brokerage Company and Cushman & Wakefield.
The report described the decline as “slow, but steady improvement in vacancy over the year.”
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Along with the 10.2 overall vacancy rate for the city of Binghamton, the report found that the city’s central business district (CBD) has a vacancy rate of 8.8 percent.
The report also provided the rates for four sections of the CBD, including 8.5 percent on the northwest side, 9.2 percent on the southwest side, 16.3 percent on the southeast side, and 14.1 percent on the northeast side.
The report’s “Market Overview” also highlighted some ongoing Binghamton real-estate projects.
The recent redevelopment of a 15,000-square-foot office building in downtown Binghamton continues the conversion of office space to residential, “predominantly” student housing.
In addition, crews demolished two previously vacated office buildings in a mixed-use development near Binghamton University. Construction crews also started work on a 562-bed student townhouse complex, the report said.
Firms consolidating and relocating drove “almost entirely” the office-leasing activity during 2015.
As a result, absorption “dipped” into negative territory and the overall asking rent declined slightly from $14.12 per square foot to $13.75 per square foot, the report said.
The report calls the Binghamton office market “stagnant,” but also noted some ongoing projects as signs of activity.
The construction of a 68,000-square-foot medical-office building for the area’s largest hospital system, expansion of that hospital’s administrative offices into 14,000 square-foot of flexible industrial space, and the beginning of a 6,000-square-foot “build-to-suit” project are what the report called “highlights” in the market.
Contact Reinhardt at ereinhardt@cnybj.com
