New York office market reports

Q3 2022

Leasing activity through Q3 2022 reached over 25 million square feet (msf), a 19.9% increase from Q1-Q3 2021. Leasing activity is expected to reach 34.0 msf by year end, which would be the largest year of Manhattan leasing since 2019. From Q1 through Q3 2021, 20 deals over 100,000 square feet (sf) were signed. From Q1 through Q3 2022, 33 deals over 100,000 sf have been signed – substantiating that tenants are more willing to sign large commitments than they were last year.
522.9 msf


6.2 msf proposed and under construction office developments to be delivered by year-end, 3.1 msf of which has already been pre-leased

Manhattan Return to Office (RTO) efforts

Manhattan is currently ranked #7 of U.S. cities in RTO efforts at 46.0% when comparing the week after Labor Day in 2022 vs. 2019. This is 5.7 percentage points above the U.S. city average of 40.3%

Trophy net effective rents

When comparing September 2022 to March 2020, Trophy property net effective rents are 15.0% above pre-COVID levels. Trophy base and net effective rents continue to reach new peaks and will likely continue to grow given such strong demand.

Availability rate

The total availability rate has seen its first quarter-over-quarter decrease to date in 2022, sitting at 18.4% in Q3 2022. The sublease availability rate has remained at 4.5% (23.3 msf) from Q2 while the direct availability rate decreased 20bp to 13.9% (95.8 msf) from Q2

Q3 Investment Sales

Investment activity in Q3 has slowed compared to Q2 ($670M vs. $959M). This can be attributed to rising interest rates that are stressing asset values. Avison Young expects a continuing slowdown in Manhattan office investment activity in the coming quarters. There are, however, multiple large-profile sales that are currently under contract that may help offset the slowdown for the rest of 2022.
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Get in-depth office market reports and insights from commercial real estate experts in the Greater New York area. Avison Young advisors look at New York commercial real estate activities and the latest New York statistics to provide you expert market research on New York's office properties.

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