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Emerging Tenants Drive Manhattan Office Leasing This Year
As Manhattan office leasing recovers, a trend is becoming clearer: it’s the younger, fast-growing tenants that are driving momentum, Newmark says in a new report. That’s in contrast to 2019, when large expansions and relocations by mature tenants drove the leasing market.
Even within the TAMI sector, the balance of activity has shifted. Two years ago, the big TAMI firms—Google, Apple and Amazon—represented 75.7% of office absorption in the sector. This year, tenants less than 10 years old have accounted for 59.2% of TAMI leasing activity, more than double their share in 2019.
The report, with Stephen Tsamblakos as lead author, also finds there are 4.3% more tenants in the market compared to 2019 and 18.4% more tenants in the TAMI sector. These increases have helped bring down the average age of tenants in the market by 12.2% compared to 2019, the report states.
- ◦Lease
