Manhattan Office Leasing Posts Best Performance Since 2019

Manhattan office leasing in 2024 posted its best performance since before the pandemic, Avison Young and JLL said in separate year-end reports. A key factor was the increase in large-block leasing activity, with the 44 transactions of 100,000 square feet or more auguring well for 2025, according to Avison Young. JLL put the large-block tally at greater than 50 for the year.

Both services firms cited year-over-year decreases in empty office space. JLL reported a 60-basis-point decrease in vacancy to 16.2%, while Avison Young cited a 180-bp decline in the availability rate, encompassing both direct and sublet space.

Looking ahead to 2025 and beyond, Avison Young noted that banking, finance, insurance & real estate tenants account for 41.8% of expiring leases by square footage among major office-using industries between now and 2030, totaling 42.5 million square feet. The next largest share of lease expirations is media & PR tenants at 15.4%, totaling 15.6 million square feet.

Top-tier properties are likely to see the lion’s share of interest, according to JLL’s Monthly Market Snapshot for January. “Leasing activity is likely to be concentrated at the top of the market,” JLL reported. “With no significant amount of new construction on the horizon, this demand will spill over to high-quality Class A buildings, increasing competition—and pricing—for these spaces.”

Pictured: 919 Third Ave., where Bloomberg LP renewed and expanded to more than 900,000 square feet.

The post Manhattan Office Leasing Posts Best Performance Since 2019 appeared first on Connect CRE.