Occupiers in Manhattan continue to commit to top-tier office space

• Starting even before the pandemic, from 2015 to 2019, office occupiers gravitated towards higher-quality office spaces in a bid to attract talent, constituting 71.7% of overall leasing activity.

 

• This tendency was further accentuated by COVID-19 (post April 2020), as higher-quality office spaces became instrumental in enticing existing employees back to the office, comprising 73.4% of total leasing.

 

• As the first quarter of 2024 comes to an end, this pattern remains consistent. Despite constituting only the top 25% of office inventory, Trophy and Class A properties still command 70.1% of overall demand. However, B/C properties have begun to capture a slightly larger portion of the market in recent years.

March 20, 2024

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