NYC Office Market Review and Key Trends, Q3 2024

Our NYC Office Market Review and Key Trends, Q3 2024 includes rental rates and leasing strategies. It will help you to:

(1) Make Smart Leasing Decisions: Gain detailed insights into office rental prices and availability in popular neighborhoods.

(2) Optimize Your Budget: Access valuable information to help you lease the ideal space for your business.

(3) Navigate Office Real Estate with Confidence: Utilize reliable market data to streamline 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 and has the most comprehensive database of real estate data throughout the US.

Key Costar NYC Office Market Leasing Statistics:

Asking Rent/SF: $51.96*↓
Vacancy Rate: 18.9% —
Inventory SF: 437M ↑
Existing Buildings: 1,535 ↑

*Weighted average.

Opinion:

“While a recovery to pre-pandemic conditions is not anticipated anytime soon, there are indications that the New York office market may be turning a corner at the start of the third quarter.” Costar 10/07/24

The Cost of Renting an Office in Popular NYC Neighborhoods*

Grand Central– $53.04. 38th- 47th Street & Fifth- Second Avenue. Special Report: Small office near Grand Central Station

Plaza– $63.70. 47th- 65th Street & Fifth Avenue- East River. Special Report: Luxury O.ffice NYC for Financial Firms

Columbus Circle- $57.61. 50th- 65th Street & Sixth Avenue- Hudson River

Time Square- $54.74. 50th- 42nd Street & Fifth Avenue- East River

Penn Station/Fashion– $42.44. 30th- 42nd Street & Fifth Avenue- Hudson River. Special Report: Penn Station Office for Rent and Hudson Yards Office for Rent

Murray Hill- $42.79. 38th- 30th Street & Fifth Avenue- River

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

Chelsea- $51.02. 12th- 30th Street & Fifth Avenue- Hudson River. Special Report: Best Chelsea NY Offices for Growing AI and Tech Companies

Grammercy Park- $69.89. 12th- 30th Street & Fifth Avenue- East River. Special Report: Best Gramercy Park NY Offices for Growing AI and Tech Companies

Greenwich Village- $73.07. 12th- East Houston Street & Sixth Avenue- River

Soho- $55.69. East Houston- Canal Street & Sixth Avenue- East River. Special Report: Cost of Renting a SOHO Office

Hudson Square- $57.60. 12th- Canal Street & Sixth Avenue- River

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

City Hall $42.16. Canal- Vesey Street & Church Street- East River. Special Report: Law Office for Lease Near the NY Courts

Financial- $54.10. South Street- Maiden Lane & Broadway- East River

Insurance- $43.30. Brooklyn Bridge- Liberty Street & Broadway- East River. Special Report: Cost of Renting an Office Near Fulton Street Terminal

World Trade Center- $49.77. Murray- State Street & Broadway- Hudson River. Special Report: World Trade Center Office Map & Rental Guide

Upper Eastside- $50.41. 110th- 65th Street & Fifth Avenue- East River

Upper Westside- $–.–. Parkway- 64th Street & Central Park West- Hudson River

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

Bronx- $31.78.

Brooklyn- $39.61.

Queens- $40.70.

Staten Island- $35.32.

*Weighted average across neighborhood office buildings as of October 7, 2024.

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

Photo by Felipe Cardona

(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) Successful companies are relocating to luxurious offices in buildings with abundant amenities, and they are securing favorable lease terms. Class A properties are competing by offering a variety of Tenant Incentives such as (a) high quality prebuilt offices which may be furnished; (b) rent concessions; and (c) cash contributions for office construction when a space is raw.

(4) Class B and C properties primarily attract tenants through rent discounts.

(5) Some well-capitalized landlords provide fully furnished move-in ready offices, allowing the cost to be spread over the lease term.

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.