2024 Year-End NYC Office Market Analysis & Insights

Photo courtesy of Arthur Brognoli

2024 Year-End NYC Office Market Analysis & Insights reports on rental prices and leasing strategies. It will help you:

→ Make Informed Leasing Decisions: Understand office rental prices across prime neighborhoods.

→ Maximize Your Budget: Leverage your knowledge to secure the right office at the right price.

→ Confidently Navigate the Office Market: Use reliable data to optimize your search process.

Cogent Realty Advisors is a licensed NO FEE real estate broker that represents companies that lease office space. Contact us for help finding and negotiating your next lease. (212) 509-4049.

NYC Office Market Leasing Statistics

CoStar is the world leader in commercial real estate information, analytics and news. Costar provides the most comprehensive real estate database throughout the US.

Key 2024 Year-End NYC Office Market Facts

Asking Rent/SF: $52.00 ↑*
Vacancy Rate: 19.1% ↑
Inventory SF: 436M –
Existing Buildings: 1,543 ↑

*Weighted average.

Opinion:

“With space markets recently hitting bottom and leasing activity much improved compared to the prior year, the New York office market is showing signs of stability.” Costar 1/02/2025

The Cost of Renting an Office in Popular NYC Neighborhoods*

Grand Central– $55.24. 38th- 47th Street & Fifth- Second Avenue. Special Report: Small office near Grand Central Station

Plaza– $63.62. 47th- 65th Street & Fifth Avenue- East River. Special Report: Rockefeller Center Office Sublease

Columbus Circle- $57.21. 50th- 65th Street & Sixth Avenue- Hudson River

Time Square- $57.24. 50th- 42nd Street & Fifth Avenue- East River

Penn Station/Fashion– $42.78. 30th- 42nd Street & Fifth Avenue- Hudson River. Special Report: Penn Station Office for Rent and Hudson Yards Office Sublease and PENN 1 Office Sublease

Murray Hill- $47.63. 38th- 30th Street & Fifth Avenue- River

U.N. Plaza- $56.63. 48th- 38th Street & Second Avenue- East River

Chelsea- $47.51. 12th- 30th Street & Fifth Avenue- Hudson River. Special Report:

Grammercy Park- $70.63. 12th- 30th Street & Fifth Avenue- East River. Special Report: Best Gramercy Park NY Offices for Growing AI and Tech Companies

Greenwich Village- $65.33. 12th- East Houston Street & Sixth Avenue- River

Soho- $54.22. East Houston- Canal Street & Sixth Avenue- East River. Special Report: Cost of Renting a SOHO Office

Hudson Square- $54.07. 12th- Canal Street & Sixth Avenue- River

Tribeca- $58.90. Murray- Canal Street & Church Street- Hudson River

City Hall $42.32. Canal- Vesey Street & Chuhttps://rentnyoffice.com/prestige-offices-trumps-40-wall-street/rch Street- East River. Special Report: Law Office for Lease Near the NY Courts

Financial- $54.60. South Street- Maiden Lane & Broadway- East River. Special Report: Prestige Office Space at Trump’s 40 Wall Street

Insurance- $42.40. Brooklyn Bridge- Liberty Street & Broadway- East River.

World Trade Center- $49.94. Murray- State Street & Broadway- Hudson River. Special Report: A Guide to the Top Office Buildings in Downtown NYC

Upper Eastside- $106.12. 110th- 65th Street & Fifth Avenue- East River

Upper Westside- $–.–. Cathedral Parkway- 66th Street & Central Park West- Hudson River

Harlem/North Manhattan- $48.45. Inwood Park- 110th Street & Harlem- Hudson River

Bronx- $29.48.

Brooklyn- $39.64.

Queens- $40.41.

Staten Island- $45.20.

*Weighted average across NYC Office Market neighborhood buildings as of 1/02/2025.

6 Important Trends Impacting Tenants in the New York City Office Market

Photo courtesy of Next Voyage

(1) Tenants hold the upper hand in negotiations for both new leases and lease renewals.

(2) Building owners face strong competition to lease out vacant spaces.

(3) Shorter lease terms of 3 years are now common.

(4) Successful companies are relocating to luxurious offices. Elite properties offer onsite amenities and Leasing Incentives that include: (a) newly prebuilt offices; (b) rent concessions; and (c) cash payments for custom office construction.

(5) Rent discounts are being used to attract Tenants to mid-tier buildings.

(6) Furnished move-in ready offices are now offered by some Landlords.

Cogent Realty Advisors is a licensed NO FEE real estate broker that represents companies that lease office space. Contact us for help finding and negotiating your next lease. (212) 509-4049.