The current market conditions in Manhattan are being adapted to by occupiers of various sizes, as highlighted in Avison Young’s Q3 2023 Office Market Report for New York. The report reveals that large occupiers are primarily choosing to renew their leases (67.7%), while smaller and mid-size occupiers are taking advantage of tenant-friendly conditions to relocate (67.6%). A smaller percentage of these occupiers have opted for lease renewals (25%) or expansion opportunities (7.4%).
According to Dorothy Alpert, Principal and Tri-State President at Avison Young, leasing activity has significantly declined compared to last year with an estimated total of just under 24 million square feet by the end of the year. Despite this slow activity, interesting approaches have been observed from large-, mid-, and small-size occupiers who employ different strategies when it comes to renewals and expansions.
In Q3, large office occupants were found driving lease renewals in Manhattan without any mentionable impact from Connect CRE or its affiliates.
