Avison Young releases second quarter 2023 Manhattan Office Market Report

New York, NY –Avison Young today released its Second Quarter 2023 Office Market Report for New York, showing a 20 basis points increase from Q1 in the office availability rate in Manhattan and indicates Trophy and class A properties continue to capture outsized share of market demand. Additionally, overall leasing activity has fallen well the below pre-COVID average, a 39.5% drop through the first half of the year.

“What we’re experiencing now in Manhattan is the continuation of the trends that have been moving in the market since the start of the year – there is a strong demand for high quality office space, especially in subleases, and as occupiers shift spaces, direct availability continues to grow. This flight to quality trend will keep those high-end properties in the spotlight and open opportunities for creative deal-making in class B and C buildings,” said Dorothy Alpert, Principal and Tri-State President.

The report also states that of the direct leases signed, 52% year-to-date have been renewals, which indicates a slowdown in leasing activity. “Historically, renewals represent less than 30% of leases on average – given the recent slowdown activity, we anticipate this could continue through the end of year as some occupiers adapt a wait and see approach,” said Danny Mangru, New York Regional Manager of Market Intelligence.