Based on analysis by Cushman and Wakefield, Manhattan’s office market closes the year with an vacancy rate of 8.9%, down 40 basis points from year-end 2016 and the lowest vacancy rate in 18 months. A total of 39.5 million s/f of office space was leased or renewed in 2017, up from 35.5 million s/f in 2016 and the second most in a single year in more than a decade behind only 2014 (43 million s/f).
There were 56 leases that were for more than 100,000 s/f, the highest number on record and better than the yearly average of 45 leases. Of these 56 large leases, 10 were signed in for spaces south of Canal Street, 22 were for upwards of a 250,000 s/f and 38 were signed by companies looking to change locations compared to 18 that simply renewed. Since 2016, 40% of the large tenants that have signed leases had 3 years remaining compared to less than 33% from 2013 through 2015.”