New York Market Overview
Office Leases:
Manhattan office leasing still has a long way to go. Leasing volume during the first half of 2024 was up 16% year-over-year. Even if leasing volume continues at the same pace for the second half of the year, it would still be about one-third below 2019.This past quarter, the Plaza District led leasing, accounting for more than 30% of Manhattan’s leasing volume. The flex office industry leased almost half a million square feet in Manhattan during the highest quarterly volume in the industry since 2019.
Certain Midtown corridors are faring better than others. On Park Avenue, for example, the availability rate was down to 10.6% this quarter, compared to an overall availability rate of 16% in Midtown. On Madison Avenue, the availability rate is the lowest it’s been in almost four years, boosted by leasing at 22 Vanderbilt.
The Financial District had an availability of 25.4% for the quarter, the only Manhattan submarket above 25%.
- Blackstone Group is expanding by 250,000 square feet at 345 Park Avenue to 1.06 million square feet of office space across 28 floors.
- Industrious leased 240,000 RSF of the former WeWork space at 12 East 49th Street.
- Covington & Burling signed a sublease at 30 Hudson Yards for 235,000 sf.
- Stripe signed a sublease for 147,000 RSF at 28 Liberty Street, relocating from 199 Water Street.
- Herrick Feinstein signed a new lease for 77,000 RSF at 2 Park Avenue. A reduction from its current size in the building.
- Elliott Investment Management is subleasing 126,000 SF from Franklin Templeton until 2031 and a direct lease for 12 years for 23,000 SF.
- Tradeweb Markets signed a 76,000 SF lease at 245 Park Avenue for a 15-year lease. Asking rents were $145 per SF.
- Willow Tree Credit Partners signed a five year lease for 11,000 RSF for the full 29th floor of 450 Park Avenue. Asking rents were $165 per SF.
- Framework leased 8,000 RSF at its Domino Refinery redevelopment.
Retail Leases:
- Hobby Lobby signed a lease at 270 Greenwich Street.
- Classic Car Club signed a new lease for 60,000 SF at 645 11th Avenue.
- Delilah signed a lease for 10,000 Sf at 50 Ninth Avenue.
- Sephora renegotiated a lease for 6,300 square feet on the ground floor at 520 Madison Avenue for another 18 months with a price reduction of two-thirds.
- Hounds Town signed a 6,000 lease at 809 Atlantic Avenue.
- Barry’s Bootcamp signed a 5,200 SF lease at 510 Driggs Avenue.
- Miniso signed a 5,000 SF lease at 150 Broadway.
- Chick-fil-A signed a 5,000 lease at 809 Atlantic Avenue.
- Perspire Sauna Studio signed a lease for 2,800 SF at 510 Driggs Avenue.
