Marcus & Millichap has released its 2024 New York City Office National Investment Forecast report, indicating a promising outlook for the city’s office market. “The resurgence of interest in well-located Class B and C segments in Midtown, together with the consistent demand for proximity to major transportation nodes, presents a promising forecast for New York City’s office market this year,” said Eric Anton, senior managing director of investments. 

Despite challenges like WeWork’s relinquishment of nearly 4 million square feet in Midtown, older properties in prime corridors are drawing tenants back, especially those near major transport nodes. Transaction velocity is showing signs of recovery, with increased investor interest in mid- and lower-tier properties, particularly in prime Manhattan corridors and growing neighborhoods in the outer boroughs. 

The report also highlights positive trends such as office-to-residential conversion initiatives for vintage assets and a projected mean rent of $54.39 per square foot by the end of 2024. Buyers anticipate increased transaction volume in the Class B and C segments, signaling a positive shift in the city’s office landscape.