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Large Manhattan Office Occupiers Drive Renewals in Q3
Different occupier sizes are adapting to the current market conditions in Manhattan, with large occupiers driving renewals while smaller and mid-size occupiers take advantage of tenant-friendly conditions to relocate, according to Avison Young’s Q3 2023 Office Market Report for New York.
The report highlights varying approaches to the market by occupiers of different sizes. Large occupiers have predominantly chosen to renew their leases (67.7%), while smaller to mid-size occupiers have shown a preference for relocation (67.6%), with a smaller percentage renewing leases (25%) or pursuing expansion (7.4%).
“In Manhattan, we have witnessed a significant decline in leasing activity from last year and are only anticipating reaching just under 24 msf by years’ end,” said Dorothy Alpert, Principal and Tri-State President. “While leasing activity is slow, we are seeing interesting approaches by large-, mid-, and small-size occupiers employ different strategies when it comes to renewals and expansions.”
- ◦Lease
