New York Office Leasing News Q4 2022
Business owners, get ready to gain insight into NYC’s office leasing market! Our report breaks down the activity in terms of rental prices and availability. Read on for a comprehensive look at what New York City has to offer – this could be extremely valuable information when it comes time for your business relocation!
Contact Cogent Realty: (212) 509-4049.
The Partnership for New York City surveyed 160 major Manhattan employers between August 29 and September 12, 2020 to gauge the extent to which employees have returned to the office or are still working remotely. Key take-aways include:
- Return to office rates are increasing and 54% of workers are expected in the office on an average weekday in January 2023.
- 77% of employers indicated a hybrid office schedule will be their predominant post-pandemic policy, largely in response to employee preference.
- Employers remain committed to staying in New York City: 54% expect their office employee headcount will increase or stay the same over the next five years; only 10% expect a decline. Moreover, most do not have plans to reduce their real estate footprint in the city at this time despite the increase in days of remote work.
Manhattan Office Leasing Statistics
Costar Group Inc. is NASDAQ: CSGP
CoStar is the world leader in commercial real estate information and has the most comprehensive database of real estate data throughout the US, Canada, UK, France, Germany, and Spain. Costar Group Inc. includes well- known brands like Loopnet, Emporis, Apartments.com, Home.com and BizBuySell.
Key Costar Manhattan Office Building Indicators:
- Asking Rent/SF: $55.61* ↓ (*Weighted average across all Manhattan office buildings.)
- Vacancy Rate: 18.6% ↑
- Inventory SF: 412 M ↑
- Existing Buildings: 1,451 ↑
Asking Rents in Popular Neighborhoods*
Grand Central- $57.17. 38th- 47th Street & Fifth- Second Avenue
Penn Station/Fashion- $45.49. 30th- 42nd Street & Fifth Avenue- Hudson River
Plaza- $64.31. 47th- 65th Street & Fifth Avenue- East River
Columbus Circle- $61.51. 50th- 65th Street & Sixth Avenue- Hudson River
Time Square- $65.23. 50th- 42nd Street & Fifth Avenue- East River
U.N. Plaza- $68.76. 48th- 38th Street & Second Avenue- East River
Chelsea- $47.97. 12th- 30th Street & Fifth Avenue- Hudson River
Murray Hill- $49.90. 38th- 30th Street & Fifth Avenue- River
Grammercy Park- $71.25. 12th- 30th Street & Fifth Avenue- East River
Greenwich Village- $49.51. 12th- East Houston Street & Sixth Avenue- River
Soho- $65.54. East Houston- Canal Street & Sixth Avenue- East River
Hudson Square- $47.71. 12th- Canal Street & Sixth Avenue- River
Tribeca- $74.00. Murray- Canal Street & Church Street- Hudson River
City Hall- $50.25. Canal- Vesey Street & Church Street- East River
Financial- $56.07. South Street- Maiden Lane & Broadway- East River
Insurance- $49.18. Brooklyn Bridge- Liberty Street & Broadway- East River
World Trade Center- $51.00. Murray- State Street & Broadway- Hudson River
Upper Eastside- $54.07. 110th- 65th Street & Fifth Avenue- East River
Harlem/North Manhattan- $49.65. Inwood Park- 110th Street & Harlem- Hudson River
Brooklyn and Queens- $37.12 and $44.25.
*Weighted average across neighborhood office buildings.
Cogent Realty’s Perspective on Manhattan Office Leasing
- Office Tenants continue to have an advantage when negotiating new leases and lease renewals.
- There is fierce competition among building owners to secure new business and retain existing Tenants.
- Successful companies are leasing high quality office space in amenity-rich buildings at favorable terms.
- Class A and “in demand” properties are competing by offering Tenant Incentives including rent concessions (the free rent period) and cash contributions used for the construction of new offices.
- Lower quality “commodity” properties are offering rent discounts.
- To motivate leasing, Landlords are using different strategies:
- Upgrading building public areas and applying Covid-19 health protocols.
- Pre-building modern move-in ready office suites.
- Offering flexible leases with shorter terms.
- Delivering office space fully furnished with an internet connection.
- Installing popular amenities such as a conference center, quick service dining, and a fitness/wellness center.
News Reports about New York Office Leasing
Premium Office Leases Surged in Manhattan Last Year
190 Manhattan office leases were priced at more than $100 per SF in 2022
Remote work is gutting downtowns, forcing leaders to reinvent the postpandemic city.
Before the pandemic, 95% of offices were occupied. Today that number is closer to 47%.
Finding the Perfect Office Space is a Big Decision
- Cogent Realty Advisors, Inc. is an independent and licensed New York State commercial realtor founded by Mitchell Waldman in 2002.
- As a NO FEE tenant-representation company, Cogent Realty Advisors Inc., is unique in the commercial real estate industry. While many firms work for both building owners and tenants, we focus solely on representing the interests of clients.
- We provide objective, unbiased expertise in finding office space and negotiating lease agreements. Our experience and knowledge in the NYC market means that we can secure the best office space for our clients with favorable terms and pricing.
- Put simply, Cogent Realty Advisors, Inc. is dedicated to getting our clients the best deal possible.
- For help with your office real estate, contact Mitchell Waldman: (212) 509-4049.
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