Commercial real estate news releases from Avison Young
Quarterly and topical research insights to help your business gain competitive edge in commercial real estate.
Manhattan office demand remains strong as availability rate dips and large transactions bolster leasing activity
Avison Young releases third quarter 2022 Manhattan Office Market Report
New York, NY – Avison Young today released its Third Quarter 2022 Office Market Report for New York, showing positive signs of increased leasing activity. Overall, the surge in availability that has risen in quarters past is beginning to slow. The availability rate saw its first quarter-over-quarter decrease by 18.4%, signaling stronger occupancy.Additionally, the Report indicates that large transactions continue to bolster leasing activity. Leasing activity reached more than 8 million square-feet (msf), up 17.4% from last quarter. The cumulative leasing activity from Q1-Q3 2022 is 19.9% greater than Q1-Q3 2021. This increase is due to the high volume of large transactions in which 33 deals over 100,000-square-feet (sf) have been signed between Q1 and Q3 (20 in 2021).
“The Manhattan office market is on track to have its best year of leasing activity since 2019 as large transactions continue to bolster leasing,” said Danny Mangru, Innovation & Insights Regional Manager of the firm’s New York City office. ”Avison Young is seeing tenants willing to sign large commitments for longer lease terms than they were last year and as these numbers rise, along with return to office efforts hovering around 50%, we should expect strong demand to continue through year-end.”
The Report also outlines the widening of the gap between class A net effective and base rents, as occupiers in this sector are shifting demand towards higher quality assets. The gap between base and net effective rents has widened from $9.83 per-square-foot (psf) to $18.18-psf. Net effective rents have leveled due to base rents incrementally trending upward along with historically large concessions packages, which are being offered to induce tenant commitments as a strategy to remain competitive.
Avison Young creates real economic, social and environmental value as a global real estate advisor, powered by people. As a private company, our clients collaborate with an empowered partner who is invested in their success. Our integrated talent realizes the full potential of real estate by using global intelligence platforms that provide clients with insights and advantage. Together, we can create healthy, productive workplaces for employees, cities that are centers for prosperity for their citizens, and built spaces and places that create a net benefit to the economy, the environment and the community.
Avison Young is a 2022 winner of the Canada's Best Managed Companies Platinum Club designation, having retained its Best Managed designation for 11 consecutive years.
For more information:
Avison Young is a 2022 winner of the Canada's Best Managed Companies Platinum Club designation, having retained its Best Managed designation for 11 consecutive years.
For more information:
- Download 2022 Third Quarter Office Market Insights Report here.
- Nathan Reyna, Media Relations & Content Specialist, Northeast: +1.917.877.1697
- Dorothy L. Alpert, Principal and Tri-State President, New York: +1.212.729.7127