New York office market report
Q4 2024
In 2024, the Manhattan office market saw it's highest level of post-Covid leasing activity at 35.9 million square feet (msf), partly due to an increase in large-block transactions. Additionally, the overall availability dropped to 17.9%, the lowest value since 2020. Leading the way in leasing activity, class A properties accounted for its largest share of activity in over a decade- 38.9%.
Manhattan leasing activity in 2024 hits post-Covid high
2024 leasing activity in Manhattan has reached 35.9 million square feet (msf) – 17.2% higher than that of 2023.
The number of 100k+ sf transactions in 2024 has reached the highest annual amount since 2019 with 44 large transactions. This increase in large-block leasing activity is a positive sign going into 2025.
Manhattan availability rate hits lowest value since 2020
Manhattan’s overall availability rate of 17.9% in Q4 2024 marks the lowest availability rate in the last four years. Over the course of 2024, the overall availability rate dropped by 180 basis points (bps) from 19.7%. This drop came from a decrease in both direct and sublet available space, 7.6 msf and 1.9 msf, respectively.
This major decrease in available space, coupled with leasing activity for the year, shows the current strength of the Manhattan office market.
Class A’s share of Manhattan leasing activity by class
In 2024, class A properties accounted for its largest share of leasing activity in over a decade. Increasing demand for higher tier class A product led to a 12.8% increase year-over-year.
Almost half of the large block leasing transactions (100k+ sf) in 2024 occurred in class A product. Media, PR, telecom & entertainment, banking, finance, insurance & real estate, and law firm companies were the most active in seeking class A space, representing 60.1% of demand.
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