Manhattan trophy and class A properties see significant decreases in availability rate
Manhattan availability rate changes by class
- Over the last 12 months, Manhattan has seen a continuation of the flight to quality in which tenants are actively choosing higher quality spaces despite the higher rents that come with it. This preference of premier space has been reflected in the availability rates, as trophy and class A buildings saw 3.3% and 2.8% respective basis point (BPS) decreases in availability rate from Q1 2024-Q1 2025. Trophy decreased from 18.2% to 14.9%, while class A fell to 18.9% from 21.7%.
- As supply decreases in the trophy and class A markets, we anticipate more of the following trends as we move through 2025. Landlords in the trophy and class A space are beginning to lower concession packages and raise rents as new supply hits the market. There is an overall increase in underlying activity in the class B market, especially for owners who have invested in new amenity programs and/or above standard tenant installations.
May 6, 2025
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