Manhattan’s office leasing market remains weak. Second quarter activity was 25.2% below pre-pandemic (2105-2019) averages. Leasing in the first half of 2023 fell 12.1% from the first half of 2022. The overall availability rate increased 20 basis points from a quarter ago to 19.7%, a new cycle peak. Asking rents across all asset classes and markets increased only 0.6% year over year. And second quarter availability and pricing trends have carried through July and August of 2023.
Direct available space now measures 70.3 million square feet, the highest total in history. The growing amount of available space is putting upward pressure on concession packages and downward pressure on taking rents in an incredibly tenant favorable market.
Demand in trophy or Class A-plus space remains strong, driving rents higher in this segment of the market. But, tenants are able to dictate terms to a greater extent for commodity Class A and Class B/C space.
Given the market weakness, it is increasingly important to have a trusted and unconflicted advisor to help navigate and leverage the market. Armano Real Estate can help your company maximize concession packages and occupancy cost savings.
Please see the below link which provides an example of the current office space situation in Manhattan:
https://nymag.com/press/2023/07/the-panic-and-pivot-of-manhattans-office-megalandlords.html
Feel free to contact us regarding your current real estate situation. We can provide a no-fee lease review and analysis and a preliminary space program to help meet your hybrid work plans and corporate real estate vision.
Feel free to see additional resources related to carbon emissions below:
NYS Carbon Emissions
https://www.nyc.gov/site/sustainablebuildings/ll97/local-law-97.page
https://www1.nyc.gov/assets/buildings/local_laws/ll97of2019.pdf
