Manhattan Office Leasing Report for Business Owners, Q3 2022

By Mitch Waldman

Manhattan Office Leasing Report for Business Owners, Q3 2022

Manhattan Office Leasing If you’re a business owner in the market for new office space, then you’ll want to take a look at this report on NYC office leasing activity. The data in this report will give you an idea of what to expect in terms of rental prices and availability. Keep reading to find out more!

 

 

The Partnership for New York City surveyed 160 major Manhattan employers between August 29 and September 12, 2022 to gauge the extent to which employees have returned to the office or are still working remotely. Key take-aways include:

• 49% of office workers are currently at the workplace on an average weekday, up from 38% in April.

• Only 9% are in  the office five days a week.

• 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. 

 

 

 

Landlords are becoming realistic about office usage in New York City.

Silverstein CEO: RIP Five days a week in the office

Marty Burger says “new normalcy” for offices will be 3-4 days a week at 70-80% occupancy

 

Manhattan Office Leasing Statistics

Office Leasing Report

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: $56.16* ↑ (*Weighted average across all Manhattan office buildings.)
  • Vacancy Rate:  17.2% ↑
  • Inventory SF: 402 M ↑
  • Existing Buildings: 1,440 ↑

 

 

Manhattan Office LeasingAsking Rents in Popular Neighborhoods*

Grand Central- $60.13.  38th- 47th Street & Fifth- Second Avenue

Penn Station/Fashion, including Hudson Yards- $60.32. 30th- 42nd Street & Fifth Avenue- Hudson River

Plaza- $63.94. 47th- 65th Street & Fifth Avenue to East River

Columbus Circle- $57.94. 50th- 65th Street & Sixth Avenue- River

Chelsea- $56.65. 12th- 30th Street & Fifth Avenue- Hudson River

Grammercy Park- $68.93. 12th- 30th Street & Fifth Avenue- East River

Tribeca- $74.03. Murray- Canal Street & Church Street- Hudson River

Financial District- $55.95. South Street- Maiden Lane & Broadway- East River

Brooklyn Downtown – $47.83. Furman Street- Navy Street & East River to Atlantic Avenue.

*Weighted average across neighborhood office buildings.

 

Insider’s View on Manhattan Office Leasing
  1. Office Tenants continue to have the advantage when negotiating new leases and lease renewals.
  2. There is fierce competition among property owners to secure new business and retain existing Tenants.
  3. Successful companies are taking advantage of the current environment by leasing high quality office space in amenity-rich buildings at favorable terms.
  4. Class A and “in demand” properties are competing by offering enhanced Tenant Incentives. These include rent concessions (the free rent period) and cash contributions used for the construction of new offices.
  5. Lower quality properties are offering rent discounts.
  6. Pragmatic Landlords are using different strategies to motivate leasing:

(a) Upgrading building public areas.

(b) Applying Covid-19 health protocols such as enhanced ventilation, air filtration, touchless entry and frequent cleaning.

(c) Pre-building modern move-in ready office suites.

(d) Offering flexible leases with shorter terms.

(e) Delivering office space fully furnished with an internet connection.

(f) Installing popular building amenities such as a conference center, quick service dining, and a fitness/wellness center.

(g) Providing a co-working facility as a service to existing Tenants and to attract new business.

 

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.                   

#ManhattanOfficeLeasingReportQ32022

 

 

Posted in Office Lease Reference Guides