New York Market Overview

Market Overview:

Manhattan Office Leasing volume is likely to surpass 29 million square feet, but still below 2019 levels. Office-to-residential conversions are taking large blocks of space off the market, with more to follow. The pace of office demand has a long way to go in order to absorb the office space that came to the market during Covid.

Midtown is having a moment. A few big deals boosted the leasing market last month, and the six largest were in Midtown.

Leasing volume grew nearly 60% from the previous month and surpassed the 2019 (pre-pandemic) monthly average of about 3.5 million square feet.

Manhattan’s availability rate fell from 17.9 to 17.6%. Sublet supply also tightened for the fifth consecutive month, dropping to its lowest level since April 2022.

Office:

1. Hobby Lobby signed a new lease at 270 Greenwich Street for 70,700 sf.
2. Socceroof signed a new lease at 28 Liberty Street for 20,000 sf.
3. Whole Foods signed a new lease at 409 East 14th Street for 20,000 sf.
4. TMPL, a gym, signed a new lease at 500 Metropolitan Avenue for 17,800 sf.
5. Brasserie Cognac de Monsieur Ballon signed a new lease at 461 Fifth Avenue for 13,700 sf.
6. Trimworld signed a new lease at 247 West 37th Street for 11,000 sf.
7. Flight Club, a pub, signed a new lease at 31 Union Square West for 10,700 sf.
8. William Norgard, a dispensary operator, signed a new lease at 30 Times Square for 10,000 sf.
9. Sephora signed a new lease at 520 Madison Avenue for 6,300 sf.
10. Le Jardin Café & Deli signed a new lease at 130 Water Street for 4,400 sf.
11. Langan’s, an Irish pub, signed a new lease at 114 West 47th Street for 4,000 sf.

Retail:

1. Willkie Farr & Gallagher renewed their lease for at least another 20 years at 787 Seventh Avenue for 315,000 sf.
2. Ares Management signed a new 15-year lease, expanding by three floors, at 245 Park Avenue for 307,000 sf.
3. Blackstone signed a new lease for 251,000 sf at 345 Park Avenue.
4. CBRE signed a lease renewal at 200 Park Avenue for 180,000 sf for an additional 13 years.
5. Elliott Investment Management signed a new lease at 280 Park Avenue for 149,000 sf.
6. Tradeweb Markets signed a new lease at 245 Park Avenue for 76,000 sf.
7. BlackRock signed a new lease expansion at 50 Hudson for 50,000 sf.
8. The École signed a new lease at 120 East 23rd Street for 46,000 sf.
9. Faegre Drinker Biddle & Reath signed a new lease at 1177 Sixth Avenue for 42,000 sf.
10. Spotify is set to sublease its 103,000-square-foot space at 4 World Trade Center to StubHub, who moved its headquarters to 3 World Trade early last year from taking a 44,000-square-foot lease on the 59th floor of the 80-story office building.
11. Urban Edge Properties has handed back its keys to the Kingswood Center, a 220,000-square-foot commercial building at 1630 East 15th Street.