Manhattan office leasing first quarter 2024 volume declined by 6.6% versus first quarter 2023 and 22.9% last quarter. The overall availability rate increased sixty basis points from a quarter ago to 20.1%, representing a new post pandemic peak for the market. Average asking rents in Manhattan increased 0.4% from a quarter ago to $76.20 per rentable square foot. However, demand remains strong for higher quality spaces in buildings near major transportation hubs and featuring excellent amenities.
In summary, outside of the high-end market, it remains a tenant’s market and we continue to employ maximum market leverage to achieve incredible value for our clients.
Armano Real Estate is a tenant-only corporate real estate services provider. Most major commercial real estate brokerages have landlords as their biggest clients, thus, giving the landlord more influence over negotiations at the expense of tenants. This may result in less favorable deal terms as brokers may be more loyal to their biggest landlord clients over the individual tenants.
It is not possible to serve two “masters†on the same transaction equally well. We, at Armano Real Estate, have the tenant’s best interest at heart. We do not have conflicts that entangle our competitors and preclude a tenant from achieving the best possible deal terms.
Tenants have a unique window of opportunity to take advantage of existing conditions now. So, our advice is to seize the market opportunity.
It is increasingly important to have a trusted and unconflicted advisor to help navigate the market and create substantial economic value. Please feel free to reach out to us regarding a no-fee lease review or hybrid space consultation. We can provide the planning and resources necessary to achieve your corporate real estate goal and vision.
New York City Office Conversion Links
https://www.axios.com/2024/01/16/office-conversions-nyc-apartments
https://www.nyc.gov/site/officeconversions/index.page
https://nypost.com/2024/01/17/real-estate/more-than-45-nyc-office-buildings-to-become-apartments
