The Nonprofit Map & Key Trends in NYC Nonprofit Real Estate Occupancy (Based on Top 100 Occupiers):
Analysis of the real estate holdings of the 100 largest nonprofit organizations in New York City (defined by a minimum occupancy of approximately 35,000 sq ft) reveals several notable trends:
- Geographic Concentration: The majority of these large nonprofits are concentrated in Midtown and Downtown Manhattan, with a significantly smaller presence observed in Midtown South.
- Midtown Submarket Preference: Within Midtown, larger nonprofits tend to occupy properties located outside of the traditionally defined “Core Midtown” business district.
- Downtown’s Value Proposition: Downtown Manhattan remains an attractive location for nonprofit organizations, largely due to rental rates that are typically 20-30% lower than comparable spaces in Midtown.
- The Rise of Leasehold Condos: The 30-year leasehold condo structure is gaining popularity among nonprofits as a strategic financial tool. This model allows them to effectively reduce occupancy costs by eliminating real estate taxes without the substantial upfront capital investment required for outright property ownership. (See my blog on this topic)
- Significant Borough/Harlem Presence: While Manhattan remains a key location for nonprofit space occupancy overall, nonprofit organizations represent some of the largest occupiers in both Harlem and Brooklyn, highlighting their significant community presence in these boroughs.
For further details on the market, specific properties, a 30-yr leasehold, or to discuss any requirements that your organization may have please feel free to contact me.
Paul Walker
212-984-7117
Paul.Walker@cbre.com
