Commercial real estate news releases from Avison Young

Quarterly and topical research insights to help your business gain competitive edge in commercial real estate.

Despite leasing slowdown, mid-size occupiers are relocating, while large occupiers renew

Despite leasing slowdown, mid-size occupiers are relocating, while large occupiers renew 5 octobre 2023

Avison Young releases Third Quarter 2023 Manhattan Office Market Report

New York, NY Avison Young today released its Third Quarter 2023 Office Market Report for New York, showing a 30 basis points decrease from Q2 in the office availability rate in Manhattan which is largely attributed to decline in sublease available space. Leasing activity currently stands at 17.8 million square feet (msf), down 33.6% from a year ago. Despite this decrease, occupiers of different sizes are adopting varying approaches to the market.

“In Manhattan, we have witnessed a significant decline in leasing activity from last year and are only anticipating reaching just under 24 msf by years’ end. While leasing activity is slow, we are seeing interesting approaches by large-, mid-, and small-size occupiers employ different strategies when it comes to renewals and expansions,” said Dorothy Alpert, Principal and Tri-State President.

The report states that 67.7% of large occupiers have renewed their leases, while the remainder have relocated. Small to mid-size occupiers show different patterns, with 67.6% choosing to relocate, 25% renewing leases, and 7.4% pursuing expansion. “Large occupiers are driving the renewals activity in the market, while nimble small to mid-size occupiers are relocating, taking advantage of the tenant friendly conditions,” said Danny Mangru, New York Regional Manager of Market Intelligence.

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 2023 winner of the Canada's Best Managed Companies Platinum Club designation, having retained its Best Managed designation for 12 consecutive years.

For more information:

  • Download 2023 third Quarter Office Market Insights Report here.

Media Contact:

  • Nathan Reyna, Media Relations & Content Specialist, Northeast: +1.917.877.1697