According to the latest data from VTS, office demand in NYC has decreased by 22% since March, equivalent to 3 million square feet. However, it still remains above the average for monthly demand between 2021 and 2023. Positive momentum has been observed among small tenants (<10k square feet), while the tech and legal sectors have experienced declines. The average size of tenants rolling in for the years 2027-2028 is larger compared to those rolling in near term (2025-2026). In April, trophy assets saw the biggest increase in rent followed by Class A and Class B properties.
Institutional investors such as Boston Properties, Brookfield, Blackstone are indicating a shift towards capital deployment this year. According to VTS' Leasing Prediction Outlook for 2024 , there will be a significant increase of about17%in leasing compared to that of2019 . This suggests positive growth potential for NYC's office market despite recent challenges.
