According to separate year-end reports from Avison Young and JLL, Manhattan office leasing in 2024 experienced its strongest performance since before the pandemic. This was largely due to a significant increase in large-block leasing activity, with Avison Young reporting 44 transactions of 100,000 square feet or more and JLL noting over 50 such deals for the year.
Both firms also reported decreases in empty office space compared to the previous year. JLL saw a decrease of 60 basis points in vacancy rates, bringing it down to 16.2%, while Avison Young cited a decline of 180 basis points in availability rates (including both direct and sublet spaces).
Looking ahead to future years, Avison Young predicts that banking, finance, insurance & real estate tenants will account for nearly half (41.8%) of expiring leases by square footage among major office-using industries between now and 2030 – totaling approximately42.5 million square feet.The second largest share is expected from media & PR tenants at15.4%, totaling around15.6 million square feet.
JLL’s Monthly Market Snapshot for January also forecasts strong demand for top-tier properties going forward.“Leasing activity is likelyto be concentrated atthe topof themarket,” they stated.“With no significant amountof new construction onthe horizon,thisdemandwill spill overtohigh-quality ClassA buildings,resultingin increased competition—and pricing—for these spaces.”
One notable exampleis919 Third Ave., where Bloomberg LP renewedand expanded their lease,to occupyover900 thousandsquarefeet.This further supports predictionsfora continued focus on high-quality propertiesinManhattan’sofficeleasingmarketgoingforward.
