New York City office
and retail Market Research

December 2022

December 2022 New York Commercial Real Estate Market Report

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Office:
Manhattan Office leasing is down almost 50% in November versus November 2021. Some companies' leasing plans are on hold, until they see if the Federal Reserve interest rate hikes will cause a recession. Big tech firms are looking to sublet 30 million square feet across the country, up from 9.5 million square feet.

Retail:
Fifth Avenue retail stores are filling up again. Upper Fifth Avenue, from 49th Street to 60th Street, has reclaimed its No. 1 spot among the world’s most expensive retail districts.

Sales:
New York’s new developments used to be more than 350 deals a month. Now, developers reported 171 deals last month, down 20% from September and 36% from October 2019.

New York Market Overview

Office:

Jay Suites signed a 60,000-square-foot lease in Chelsea at 159 West 25th Street at $30 per square foot.

WeWork will close another 40 locations, or about 41,000 desks. 71% of WeWork’s locations are occupied.

David Zwirner Gallery signed a 36,000-square-foot lease at 520 West 20th Street.

Retail:

Annual rents for Upper Fifth Avenue stores averaged $2,000 per square foot, up 14% from pre-pandemic levels. and remain 6% below pre-pandemic levels.

Retail availability dropped nearly a full percentage point year-over-year to 5% last quarter. It was the lowest level of availability.

New York City is pushing for even more shopping on Fifth Avenue this holiday season. For the three Sundays leading up to Christmas, the avenue between 48th and 57th streets will be closed to vehicular traffic in the afternoon. The success of the stretch isn’t the only positive news for the country’s retail recovery: Spaces are filling up nationwide.

Smoke shops are a classic staple of the New York corner store. However, in just a few months, they have become some of retail’s biggest space takers, selling cannabis.

Tom Brady’s TB12 training center is opening its first standalone location in Manhattan. The fitness company signed a lease in Soho to take 3,500 square feet on the second floor of 550 Broadway.

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