Manhattan tenants are signing longer term leases in higher quality assets

As the future office landscape continues to evolve, certain tenants exhibit a greater inclination towards entering into long-term commitments compared to others, particularly in the case of higher quality buildings.

Among the various asset classes, Trophy properties stand out as the sole category securing signed leases with an average duration exceeding 10 years, presently standing at 125 months (excluding months of free rent). In contrast, Class A and Class B/C properties are currently experiencing average lease durations of 105 months and 95 months, respectively.

This emerging trend underscores the ongoing supremacy of Trophy assets in terms of demand, not only in traditional aspects such as rent and share of leasing activity, but also in the extent of lease duration.

August 16, 2023

US-NY-NYC New York