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New York City Mayor, Eric Adams, has proposed zoning changes and tax incentives to convert 136 million square feet of office space into residential units, potentially creating 20,000 new homes for 40,000 residents.

The vast majority of retail leases signed last month were not chain retailers. These diverse retailers and users think the demand is there for them to come in or expand their store count in New York City.

The sales market for office properties is at a virtual standstill. It’s a tough time to be selling offices. New York City office sales totaled just $470 million in the first quarter, down 85% from $3 billion a year ago.

The first quarter had just one office sale. It was priced at $650 per square foot, down from an average of $865 in the fourth quarter across seven deals. In the first quarter of last year, the average price was north of $1,160.

New York Market Overview


A record 94 million square feet of office space was available last month. Tenants leased just 1.5 million square feet in the period, far below the monthly average from the three previous years.

The 17.4% availability rate also matched a record from February 2022, and marked a nearly 75% increase in available office space since March 2020.

Only two leases signed last month exceeded 100,000 square feet and just one additional lease surpassed 50,000 square feet. All three were renewals or extensions (or both).

Midtown Manhattan counted 891,000 square feet leased in the period to reach an availability rate of 15.6%. Average asking rent was $78.74 per square foot.

Midtown South, the availability rate reached a record 17.9%, Terminal Warehouse at 261 11th Avenue and Penn 2 came online. The new buildings boost the average asking rent to $81.75 per square foot.

Availability Downtown remained at 20.5% amid the slowest month of the year so far in the neighborhood. The asking rent was $58.69 per square foot and has fallen by 10.8% since the covid pandemic.

Samsung signed a lease for 36,000 square feet at Penn 1. The asking rent was $100 per foot. They are moving from 15,000 square feet at 123 West 18th Street.

Spotify at 4 World Trade Center is seeking to sublease five floors. 86,000 square feet of its offices are up for grabs. The 26th and 27th floors were for just over 15 years.

Meta, the parent company of Facebook and Instagram, didn’t renew its leases at Related Companies’ 30 and 55 Hudson Yards. Those expirations will free up 250,000 square feet next year.

Noom is trying to sublease all 113,000 square feet of its space for $75 per square foot at 450 West 33rd Street. The space includes 330 workstations and a mix of conference rooms and meeting spaces. Noom’s lease runs through 2030.

Prices for older office buildings with structures ripe for conversion are selling for $200 and $300 per square foot. Last year, a task force recommended the city rezone parts of Midtown, an area heavily zoned for manufacturing, to create more conversion opportunities.


  1. Lidl’s NYC rented 23,000 square feet at 335 Eighth Avenue for a 15-year term for the basement and ground floor. Asking rents were $150 per square foot on the ground floor and $60 a square foot for the basement.
  2. Vital Climbing Gym rented 45,000 SF in a 20-year lease at 182 Broome Street.
  3. Golfzon Social rented 18,000 SF at 11 Hoyt Street, Downtown Brooklyn.
  4. Round The Clock Nursery rented 15,512 SF at 620 West 153rd Street for a 15-year term.
  5. HeartShare Human Services of New York rented 12,886 SF at 4507 Fourth Avenue.
  6. Saatva rented 6,700 RSF at 893 Broadway, for a 10-year term.
  7. The Mermaid Inn rented 6,500 SF at 335 Columbus Avenue.
  8. Retro Japan rented 5,830 SF at 87 Seventh Avenue.
  9. Antillana SuperFood rented 5,100 SF at 1000 Westchester Avenue for a 20-year term.
  10. Janet Mandell rented 5,000 RSF at 24 West 25th Street.
  11. Renzo Gracie Academy rented 5,000 SF at 31 West 14th Street for a 12-year term.

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