New York Market Overview
Office:The amount of available office space has increased almost 70% since the onset of the pandemic to 91.4 million square feet. After 2.8 million square feet of negative net absorption in the fourth quarter, net absorption since the start of the pandemic now stands at negative 37.6 million square feet.
Asking rents for Class A space in Manhattan averaged $81.51 per square foot in the fourth quarter, up slightly from a year ago. Net effective rents are down after factoring in concessions.
Tenants in the TAMI are increasingly upgrading to newer spaces. While 37% of companies in those fields moved between Class A buildings during the pandemic, another 27% have moved up from Class B to Class A spaces. All told, 65% of TAMI occupants moved to a newer building.
Office leasing in the borough plummeted 43% year over year in the fourth quarter, with tenants taking just 4.9 million square feet in the final three months of 2022.
In Midtown, 2.4 million square feet of office space was leased. The market had a negative net absorption of more than 393,000 square feet.
In Midtown South, 1.9 million square feet was leased. The market had a negative net absorption of 2.5 million square feet.
Downtown 638,000 square feet was leased in the quarter. The market did achieve a positive net absorption of 140,000 square feet.
Leasing volume for the full year totaled 29.1 million square feet, a nearly 17% increase from 2021, though still 12% below the borough’s ten-year rolling average.
The borough achieved a positive net absorption of 1.3 million square feet last year, up from 17.3 million square feet of negative net absorption in 2021.
Midtown’s average asking rent increased from $78.61 per square foot to $79.22 in the quarter, down from $79.95 in 2021.
Fox Corp. and News Corp. renewed their lease agreements at 1211 Sixth Avenue. Fox occupies 670, 000 SF and News Corp. occupies 486,000 SF. Both leases were extended through 2042, and have extension options that will become available as of December 2025 and 2027.
Franklin Templeton leased for 347,000 square feet at One Madison Avenue. The deal was in the high $130s/mid $140s per RSF.
IBM leased 328,000 square-feet at One Madison Square.
Tiffany & Company reduced its footprint by 33% with the 287,000-square-foot lease at 200 5th Avenue for $110.00 per square foot.
HSBC leased 265,000 square feet at 66 Hudson Boulevard that is roughly half the size.
Mutual of America Financial Group has owned 320 Park Avenue for more than 25 years and occupied 252,000 square feet in the building. But after selling a 25% stake in the tower last year, it became a rent-paying tenant on a long-term lease. Pzena doubled its space to 80,000 square feet.
KKR takes over Meta’s 30 Hudson Yards lease of 220,000 sf after Facebook parent declined renewal. Meta did not renew its lease at 55 Hudson Yards, which combined for roughly 30,000 square feet and ran through 2024.
Compass is subletting 89,000 square feet at 90 Fifth Avenue, with an asking price of $60 per square foot. The lease runs through 2025.
Crowell & Moring is moving to 2 Manhattan West in the Hudson Yards from 590 Madison Avenue. They leased 71,000 square feet.
Anchin Block & Anchin leased 45,673 square feet at 3 Times Square. They signed a 10-year lease, moving from 1375 Broadway.
The Jamaican Consulate General of Jamaica and the country’s permanent mission leased 42,500 square feet for 20 years at 300 East 42nd Street. The asking rent for the space was $67 a square foot.
Northwell Health leased 42,000 sf at One Court Square. Northwell Health leased a 10-year-plus deal for 42,000 square feet at the Long Island City office tower, also operating a 3,400-square-foot urgent care center on the ground floor.
New York City Department of Parks & Recreation rented 30,000 square feet with a 20-year lease at 97-77 Queens Boulevard Park for its Division of Forestry, Horticulture and Natural Resources.
Pandora rented 27,936 square feet at 1540 Broadway in Times Square. They signed a 15-year lease to move its North American headquarters from Baltimore to New York.
CompStak leased 25,644 square feet at 675 Sixth Avenue in Chelsea. The real estate data firm leased more than double its headquarters.
Dick’s Sporting Goods took 25,600 square feet at 124 East 14th Street in the East Village. The sports equipment seller leased for GameChanger, a sports live-streaming platform.
New York Life rented 20,000 square feet at 97-77 Queens Boulevard in Rego Park.
Grimshaw Architects leased 18,800 square feet at 60 Madison Avenue in the Flatiron.
Fried Frank took 14,375 square feet at 535 Madison Avenue in the Plaza District. They signed a 15-year lease to expand by almost 3,000 square feet from its current home at 375 Park Avenue.
Deborah Berke Partners signed a 10-year lease for 13,331 square feet for the entire 17th floor at 41 Madison Avenue in the Flatiron.
Deborah Berke Partners leased 13,000 SF for ten years at 41 Madison Avenue for the entire 17th floor.
Signal AI is leasing 11,000 SF lease at 440 Park Avenue South.
Retail:Soho leased more than 269,000 square feet in 50 transactions. The biggest deal was Capital One’s 13,000-square-foot lease at 555 Broadway.
Noho and Nolita posted relatively high leasing velocity in the quarter.
The apparel industry rented 546,000 square feet for 2022, including 107,000 square feet in the fourth quarter.
H Mart took a 15-year lease on 64,000 square feet at the Shops at 48-18 Northern Boulevard in Sunnyside, replacing a Stop & Shop.
CompletePlayground rented 40,000 square feet at 30 Broad Street for 15-years.
Adidas’ 39,000-square-foot renewal at 610 Broadway.
Shop Fair Supermarkets rented 27,700 square feet for 5 years at Edgemere Commons at 51-23 Beach Channel Drive.
Epicerie Boulud’s 23,000-square-foot lease at One Madison Avenue.
Daniel Boulud rented 16,000 square feet at 1 Madison Avenue for a steakhouse and French-inspired cafe. The new restaurant will cater the building’s tenant lounge and event space.
Blink Fitness rented 15,000 square feet at 886 Broadway in Brooklyn.
The Goldfish Swim School rented 10,000-square-foot at 1534 Second Avenue and will install a 70-by-22-foot swimming pool that is less than 5 feet deep to teach children to swim.
LuisaViaRoma leased a long term lease of 13,000 square feet at 1 Bond Street in Noho, following a month-long pop-up in 2018.
Olgam Life rented 9,500 square feet for 15 years at 57-16 99th Street for a plasma donation center.
Robert Chicken, a Korean-based chain, signed to open a location at 298 Fifth Avenue in Koreatown for 8,400 square feet.
Housing Works leased 7,400 square feet at 750 Broadway in Noho, for the city’s first legal cannabis dispensary.
Balenciaga rented 7,000 square feet at 110 Greene Street.
Cole Haan leased 7,000 square feet in Midtown.
Balenciaga is renewing its 7,000-square-foot lease at 30 Rockefeller Plaza.
Under Armour leased 6,750-square-feet at 139 Fifth Avenue.