Do certain industries in Manhattan commit to longer lease terms than others?

• Through 2023, the average length of lease terms in Manhattan stood at 88 months for new leases/relocations and 72 months for renewals. The influence of sublease space and the growing demand for flexibility has led to term lengths falling below historical averages.

 

• Government leases, in particular, are experiencing the longest lease terms, with an average of 173 months—just under 15 years—for new leases and relocations. In contrast, tech leases are averaging a considerably shorter 55 months for new leases.

 

• The variation in the average length of lease terms across sectors is attributed to each industry's unique needs and its capacity to adapt. Relocations generally resulted in higher lease terms for nearly every sector, with education being a notable exception.

February 8, 2024

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