NYC Office Leasing Report Year-End 2023

Leasing volume is strong at top-tier buildings. Pictured above: Heron Tower at 70 East 55th Street.

NYC Office Leasing Report Year-End 2023

Our NYC Office Leasing Report is written to inform your office rental strategy:

1. Make smart leasing decisions with detailed information about office rental prices and availability in popular neighborhoods.

2. Get the insights you need to optimize your budget and find the best space for your business.

3. Trust reliable market data to guide your search.

Cogent Realty Advisors is a licensed no fee real estate broker that represents companies who lease office space. Call (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 Office Leasing Indicators:

Asking Rent/SF: $51.48 ↓* (*Weighted average across Manhattan office buildings.)
Vacancy Rate: 19.2% ↑
Inventory SF: 450M ↑
Existing Buildings: 1,578 ↑

Opinion:

“While a few bright spots have surfaced in recent quarters, the New York office market largely continues to struggle, with little sign of meaningful improvement at the start of 2024.” Costar 1/08/24

The Cost of Renting an Office in Popular NYC Neighborhoods*

Grand Central– $56.51. 38th- 47th Street & Fifth- Second Avenue

Plaza– $63.65. 47th- 65th Street & Fifth Avenue- East River

Columbus Circle- $55.81. 50th- 65th Street & Sixth Avenue- Hudson River

Time Square- $41.87. 50th- 42nd Street & Fifth Avenue- East River

Penn Station/Fashion– $44.51. 30th- 42nd Street & Fifth Avenue- Hudson River

Murray Hill- $47.60. 38th- 30th Street & Fifth Avenue- River

U.N. Plaza- $58.18. 48th- 38th Street & Second Avenue- East River

Chelsea- $46.08. 12th- 30th Street & Fifth Avenue- Hudson River

Grammercy Park- $74.01. 12th- 30th Street & Fifth Avenue- East River

Greenwich Village- $45.57. 12th- East Houston Street & Sixth Avenue- River

Soho- $67.02. East Houston- Canal Street & Sixth Avenue- East River

Hudson Square- $50.40. 12th- Canal Street & Sixth Avenue- River

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

City Hall $43.46. Canal- Vesey Street & Church Street- East River. Special Report: Law Offices for Lease near the NYC Courts

Financial- $51.26. South Street- Maiden Lane & Broadway- East River

Insurance- $48.30. Brooklyn Bridge- Liberty Street & Broadway- East River

World Trade Center- $50.03. Murray- State Street & Broadway- Hudson River. Special Report: World Trade Center Office Map & Rental Guide

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

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

Harlem/North Manhattan- $48.84. Inwood Park- 110th Street & Harlem- Hudson River

Bronx- $31.78.

Brooklyn- $41.50.

Queens- $39.49.

Staten Island- $36.83.

*Weighted average across neighborhood office buildings.

Cogent Realty Advisors: (212) 509-4049

NYC Office Leasing Trends & Analysis from Cogent Realty Advisors

1. Tenants have the advantage when negotiating new leases and lease renewals.

2. There is intense competition among building owners to rent vacant spaces.

Few buildings can match the amenities included at the newly renovated 22 Vanderbilt.

3. Successful companies are leasing high quality offices in amenity-rich buildings at favorable terms. Class A 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 move-in ready workspace.

4. Class B and C properties are competing primarily by offering large rent discounts.

5. Several well capitalized Landlords will now deliver your office fully furnished. A portion of this cost may be amortized over the lease term.

Contact Cogent Realty Advisors: (212) 509-4049