Total leasing activity in Manhattan hits lowest volume since 2020, sublease space declines to lowest level since Q4 2021
January 2, 2024
Avison Young releases Fourth Quarter 2023 Manhattan Office Market Report
New York, NY –Avison Young today released its Fourth Quarter 2023 Manhattan Office Market Report, showing the lowest totals in Manhattan since 2020. Leasing activity currently stands at 27.5 million square feet (msf), down 21.1% from 2022. Despite this decrease, large occupiers leased 8.6 msf in Q4 2023--most of which were renewals--exceeding expectations for year-end.
“We had anticipated 2023 to close out at just under 24-msf, but the glut of renewals and new leases signed by large occupiers to close out the year provides an optimistic boost heading into 2024. Despite the uptick, Manhattan has experienced the lowest level of leasing activity since 2020, which can be attributed to the lack of large deals being signed. This year we have seen the fewest leases exceeding 100,000-sf since 2008 with only 33 leases of this size,” said Danny Mangru, U.S. Office Lead & Tri-State Regional Manager of Market Intelligence.
The report also indicates that there has been a 16.4% decrease in available sublease space since Q1 2023 and a 34.8% increase in class-A sublease space vs. total subleasing space pre- to post-Covid.
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