Insider’s Look At New York Offices, Q3 2023

550 Madison Avenue promenade.

Insider’s Look At New York Offices, Q3 2023

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Contact Cogent Realty: (212) 509-4049

“Limited new leasing activity and record-high availability have provided tenants with more leverage at the negotiating table.” Costar 10/2/23

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 Office Leasing Indicators:

Asking Rent/SF: $53.36 ↓* (*Weighted average across Manhattan office buildings.)
Vacancy Rate: 18.6% ↑
Inventory SF: 454M ↑
Existing Buildings: 1,584 ↑

Asking Rents Per Square Foot in Popular Neighborhoods*

Grand Central– $57.08. 38th- 47th Street & Fifth- Second Avenue

Plaza– $63.85. 47th- 65th Street & Fifth Avenue- East River

Columbus Circle- $61.29. 50th- 65th Street & Sixth Avenue- Hudson River

Time Square- $48.05. 50th- 42nd Street & Fifth Avenue- East River

Penn Station/Fashion– $45.03. 30th- 42nd Street & Fifth Avenue- Hudson River

Murray Hill- $46.49. 38th- 30th Street & Fifth Avenue- River

U.N. Plaza- $60.28. 48th- 38th Street & Second Avenue- East River

Chelsea- $49.92. 12th- 30th Street & Fifth Avenue- Hudson River

Grammercy Park- $69.67. 12th- 30th Street & Fifth Avenue- East River

Greenwich Village- $48.97. 12th- East Houston Street & Sixth Avenue- River

Soho- $69.42. East Houston- Canal Street & Sixth Avenue- East River

Hudson Square- $44.51. 12th- Canal Street & Sixth Avenue- River

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

City Hall- $48.34. Canal- Vesey Street & Church Street- East River

Financial– $55.78. South Street- Maiden Lane & Broadway- East River

Insurance- $48.56. Brooklyn Bridge- Liberty Street & Broadway- East River

World Trade Center– $50.18. Murray- State Street & Broadway- Hudson River

Upper Eastside- $55.55. 110th- 65th Street & Fifth Avenue- East River

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

Harlem/North Manhattan- $47.79. Inwood Park- 110th Street & Harlem- Hudson River

Bronx- $35.00.

Brooklyn- $41.51.

Queens- $40.82.

Staten Island- $29.47.

Contact Cogent Realty: (212) 509-4049

*Weighted average across neighborhood office buildings.

Palm Court lobby at the revamped 22 Vanderbilt office building.

Real Estate Trends & Analysis from Cogent Realty Advisors

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. These properties are competing by offering a combination of Tenant Incentives. Included are: (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 workspace.

4. 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 may be reduced and limited to cosmetic work only.

Contact Cogent Realty: (212) 509-4049

How Office Renters Can Take Advantage of a Depressed Market