Inside Look at the New York Office Market, Mid-Year 2023

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Contact Cogent Realty: (212) 509-4049

Office 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, Canada, UK, France, Germany, and Spain. Costar Group Inc. brands include Loopnet, Emporis, Ten-X, Apartments.com, Homes.com and BizBuySell.

Key Costar New York City Office Building Indicators:

Asking Rent/SF: $54.02 ↓* (*Weighted average across Manhattan office buildings.)
Vacancy Rate: 18.2% ↑
Inventory SF: 458M ↑
Existing Buildings: 1,584 ↑

Costar reports: “Limited deal activity and record-high availability have created a leasing environment where tenants hold all the leverage. Market participants note that rents have become highly negotiable as discounts to the asking rent are easily applied and concessions, particularly free rent, are now higher compared to years past.”

Asking Rents in Popular Neighborhoods*

Photo by Heather Shevlin

Grand Central- $57.63. 38th- 47th Street & Fifth- Second Avenue

Plaza- $63.67. 47th- 65th Street & Fifth Avenue- East River

Columbus Circle- $61.21. 50th- 65th Street & Sixth Avenue- Hudson River

Time Square- $51.54. 50th- 42nd Street & Fifth Avenue- East River

Penn Station/Fashion- $44.71. 30th- 42nd Street & Fifth Avenue- Hudson River

Murray Hill- $48.29. 38th- 30th Street & Fifth Avenue- River

U.N. Plaza- $57.99. 48th- 38th Street & Second Avenue- East River

Chelsea- $50.27. 12th- 30th Street & Fifth Avenue- Hudson River

Grammercy Park- $68.56. 12th- 30th Street & Fifth Avenue- East River

Greenwich Village- $54.85. 12th- East Houston Street & Sixth Avenue- River

Soho- $73.69. East Houston- Canal Street & Sixth Avenue- East River

Hudson Square- $47.91. 12th- Canal Street & Sixth Avenue- River

Tribeca- $77.38. Murray- Canal Street & Church Street- Hudson River

City Hall- $47.85. Canal- Vesey Street & Church Street- East River

Financial- $56.09. South Street- Maiden Lane & Broadway- East River

Insurance- $47.46. Brooklyn Bridge- Liberty Street & Broadway- East River

World Trade Center- $50.71. Murray- State Street & Broadway- Hudson River

Upper Eastside- $53.29. 110th- 65th Street & Fifth Avenue- East River

Upper Westside- $95.00. Parkway- 64th Street & Central Park West- Hudson River

Harlem/North Manhattan- $48.83. Inwood Park- 110th Street & Harlem- Hudson River

Brooklyn- $32.99

Queens- $39.48

Staten Island- $107.00

Contact Cogent Realty: (212) 509-4049

*Weighted average across neighborhood office buildings.

Real Estate Trends & Analysis from Cogent Realty Advisors

Photo by Nextvoyage

1. Office Tenants continue to have an advantage when negotiating new leases and lease renewals.

2. There is fierce competition among building owners to secure new business and retain existing Tenants.

3. Successful companies are leasing high quality office space in amenity-rich buildings at favorable terms.

4. Class A and “in demand” properties are competing by offering a combination of Tenant Incentives. These include: (a) rent concessions, also called “free rent”; and (b) cash contributions that are used for the construction of new offices. Most Landlords will manage the construction of a new office and deliver a custom move-in ready work space.

5. Lesser quality “commodity” properties are competing primarily by offering large rent discounts. At these buildings the dollar value of the renovations provided by the Landlord is reduced and may be limited to cosmetic work only.

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